Lone Star Strengthens UK Student Housing Presence with £212 Million Acquisition

Dallas-based private equity firm Lone Star Real Estate Fund VII is making a significant move into the UK student housing market by acquiring nine purpose-built student accommodation (PBSA) assets for £212 million. The seller, Unite Students, the largest developer and operator of student housing in the UK has agreed to complete the deal in August 2025.

The portfolio includes 3,656 beds spread across five key university cities: Aberdeen, Leicester, Leeds, Nottingham, and Sheffield. These locations are known for their vibrant student communities and strong demand for quality accommodation, making them attractive markets for investors focused on long-term growth.

Jérôme Foulon, Lone Star’s global head of commercial real estate, highlighted how the deal fits within the firm’s broader strategy. He said, “This transaction aligns with our focus on resilient sectors within the housing market, where we can use our expertise to unlock value. The UK’s PBSA sector continues to benefit from a growing student population and a shortage of high-quality housing.”

Beyond the purchase price, Lone Star plans to add value through targeted capital improvements and operational enhancements, demonstrating a commitment to active asset management. This is the firm’s second transaction with Unite Students in just three years, reflecting a strengthening relationship between the two companies.

With this acquisition, Lone Star’s UK student housing portfolio now exceeds 10,000 beds, providing greater scale and geographic diversification across top university locations. As demand for student accommodation continues to rise, this move positions Lone Star well to capitalize on a market with strong fundamentals and long-term potential.