Rosethorn Capital Partners is pleased to announce the acquisition of Spring Mews, a 378 bed purpose built student accommodation scheme in Vauxhall, London, in partnership with Barings. The asset has been acquired from CLS Holdings for a total consideration of £101.1m.

Spring Mews is an institutional grade PBSA asset comprising 306 cluster rooms and 72 studios, supported by a high quality amenity offering including co working space, a gym, pool, cinema and games room, as well as landscaped outdoor areas. The scheme is exceptionally well located, benefitting from strong transport connections and proximity to several major London universities.

As part of the transaction, Rosethorn will assume responsibility for asset management of the scheme, marking a significant milestone for our business as we continue to expand our footprint across the UK PBSA sector.

Commentary from Barings

Ben Pile, head of European residential investment and asset management at Barings Real Estate, commented:

“One of the world’s best cities for students, London is nevertheless significantly undersupplied with quality accommodation, and with delivery falling, this shortfall is likely to deteriorate over time. Spring Mews is an institutional grade, stabilised asset that benefits from an excellent location, and therefore proved to be a compelling acquisition opportunity as we seek to expand our exposure to the living sector in London, the UK and across Europe on behalf of our capital sources. We are excited to be working with sector specialist Rosethorn Capital as they launch their new business.”

Rory Allan, managing director and portfolio manager for the European closed end value add real estate fund series at Barings Real Estate, added:

“Spring Mews represents a rare opportunity to acquire a cash flow generating PBSA asset in a prime central London location with its severe supply and demand mismatch which is expected to continue to generate above trend rental growth. The investment is projected to deliver strong risk adjusted returns through asset management driven NOI optimisation with downside protection.”

Commentary from Rosethorn Capital

Stephen Rigby, CEO of Rosethorn Capital, said:

“We are thrilled to have completed the deal in partnership with Barings. The acquisition is a significant milestone for us as a new business, and one that will serve as a strong springboard for future growth. The market remains very challenging, and I’m extremely grateful for the hard work and commitment from my team and our advisors, as well as the collaborative approach from CLS Holdings.”