Arlington Investors, on behalf of private investors from Saudi Arabia, Kuwait, and Lebanon, has acquired a portfolio of 2,458 beds of purpose-built student accommodation (PBSA) as the majority partner in a joint venture with infrastructure fund manager Equitix.

The direct-let portfolio consists of five high-quality buildings, all recently built and centrally located in five cities across the UK: Bristol, Leicester, Nottingham, Cardiff, and Newcastle. The GBP280 million (US$361.5 million) acquisition is one of the largest UK student accommodation transactions of the past year, solidifying Arlington’s position as the largest independent owner of student accommodation in the UK, with a portfolio of over 12,700 beds.

This transaction is Arlington’s ninth acquisition in the sector, and the seventh to be funded with long-dated debt. GBP200 million (US$258.2 million) senior financing for the transaction has been provided by one of the UK’s biggest insurance groups, in the form of a 44-year fully-amortizing loan, which received a strong credit rating, making this the first direct-let student accommodation acquisition in the UK to have secured such rating.