Future Generations Plan to Sell Entire Portfolio

Future Generations was established as a joint venture between Tadhamon Capital and developers Southern Grove.

They have now completed the refinancing of their Guildford, Loughborough and Nottingham assets. The one-year loan agreement was made with Maslow Capital, who also acted as the development lender on the assets.

This refinancing is part of a more extensive plan to sell the entirety of the Future Generations portfolio. The portfolio also includes additional assets in Colchester and Sheffield, that were refinanced earlier this year in a £60m deal with DRC Savills Investment Management.

Equalling 2,049 beds, the total sale is set to fetch a price in excess of £300m. Harris Associates have been appointed to manage the sale.

Andrew Southern, chairman of Southern Grove and Future Generation, said: "Now that the assets have stabilised, we are looking to sell all five this year, which was always our plan. PBSA is the single most impressive sector in the market and there are huge swathes of US and other overseas funds coming into the UK market."

He added that the venture was looking to sell the five properties as a portfolio, rather than individually, but that Southern Grove would remain flexible on whether it would continue to manage the sites under its Future Generation Asset Management division, which took over running of the properties from Homes for Students in March.

The chairman also stated that across their assets they were 80% let, and that rents had increased by an average 15% year-on-year. Meanwhile they claim to have also benefited from a £1.2m reduction in costs over the past year.

Money raised from the sale is apparently going to be used for further expansion in the co-living, build-to-rent (BTR), and PBSA sectors. Southern Grove is also considering potential projects overseas.