Abu Dhabi-backed firm eyes $820m London student housing deal

US private equity firm Carlyle Group is close to selling student housing portfolio to three Russian billionaires
Abu Dhabi-backed firm eyes $820m London student housing deal
By Sarah Townsend
Wed 18 Feb 2015 02:06 PM

The Carlyle Group, the US private equity firm in which Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, is close to selling a student housing portfolio in London to three Russian billionaires for a reported $820 million.

It is understood that investment vehicle LetterOne – which was co-founded by Russian tycoons Mikhail Fridman, German Khan and Alexei Kuzmichev – is under offer to buy Carlyle Group and Generation Estates’ Pure Student Living portfolio.

The portfolio comprises five London student blocks with a total of 2,150 beds. Four of the blocks are completed and one is under development.

Neither Carlyle nor JLL, which is acting as agent in the deal, would comment when approached by Arabian Business.

The deal would mark Carlyle Group’s exit from the student accommodation market.

According to UK journal Property Week the Pure purchase would be LetterOne’s first real estate investment deal in London.

The three billionaires control the Alfa Group, one of Russia’s largest privately-owned conglomerates. Fridman is worth $14.1 billion and is the second wealthiest man in Russia, according to Forbes.

Carlyle Group was founded in 1987. Abu Dhabi investment vehicle Mubadala bought a 7.5 percent stake in the company in 2007.

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