Blackstone to buy UK student housing group IQ from Goldman Sachs for £4.7bn
Blackstone has agreed to buy the British student housing company IQ from Goldman Sachs in a £4.7bn deal.
IQ Student Accommodations owns and operates 67 sites in 27 towns and cities in the UK. It is one of the leading providers of private purpose-built student accommodation, with 84 per cent of its portfolio value in Russell Group cities and 52 per cent in London.
Blackstone will buy the business from Goldman Sachs, which owns 70 per cent of the group, and the medical charity the Wellcome Trust which owns 28 per cent. The bank said it is the largest ever private real estate transaction in the UK.
Richard Spencer, managing director at Goldman Sachs, said: “Over the course of our ownership, IQ has become the UK’s leading provider of high-quality student accommodation. The company’s focus on customer service and continued investment in the platform has enabled IQ to become a leader in the sector and provide an outstanding experience to students.”
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“We are proud to have been part of that journey alongside IQ’s excellent management team and our valued partners at Wellcome.”
The Wellcome Trust was one of IQ’s founding investors and the student accommodation group merged with Goldman Sachs’ student housing business in 2016.
Peter Pereira Gray, chief executive and managing partner of Wellcome’s investment division, said: “Wellcome has invested steadily in IQ from its inception 14 years ago. Over this time, including most recently in partnership with Goldman Sachs, IQ has grown to become one of the best student housing companies in the UK.”
The deal between Blackstone and IQ is subject to regulatory approval.