Quintain Estates has entered into a joint venture with the Wellcome Trust to fund and develop student accommodation
The IQ property partnership fund, a 50:50 joint venture, will develop, hold and manage student accommodation on a long-term basis.
Quintain and Wellcome have each committed up to £100m of equity to the joint venture, as well as several of Quintain’s existing assets. IQ's minimum duration is five years and its initial target size is £600m.
The first two IQ schemes, in Sheffield and Nottingham, have been completed. Quintain is also developing schemes in Birmingham, Salford and Kingston, which, with the completed schemes, will have a combined value of more than £100m.
Terms have been agreed for a further £250m of schemes and a pipeline of further developments has already been identified.
Quintain Fund Management, the specialist fund management division, will manage IQ and provide advice to the fund.
Peter Pereira Gray, co-head of portfolio management of the Wellcome Trust, said: ‘The student accommodation sector is dynamic and fast-growing and we are pleased to have added to our existing portfolio and secured further access to this market through this co-investment with Quintain.’
