abrdn launches purpose-built student accommodation platform

abrdn has today launched a purpose-built student accommodation (PBSA) platform - MYS Student Living. This is a natural evolution as abrdn further expands its capabilities as one of the largest residential fund managers in Europe, with more than 200 residential properties across 11 countries.

MYS Student Living, a joint venture with David Mathewson and Murdo Mcilhagger, will aim to address the UK and Europe’s student housing shortage and support the growing university age population which is impacted by the limited supply of quality, sustainable accommodation. With more domestic and international students attending university than ever before, key purpose-built student accommodation markets across the UK and Europe are experiencing supply shortages, and existing properties are often not fit for purpose.

MYS aims to provide a differentiated experience for students, universities and investors by offering a values-led proposition with strong ESG credentials and maximising the customer experience.

Environmental – the carbon footprint of each resident will be measured by Proptech to encourage lower environmental impact.

The built environment causes 40% of global greenhouse emissions and energy prices are rising. We will provide energy efficient buildings with decarbonised heat, reduced embodied carbon, using only renewable energy. This will allow us to work with students to reduce their energy consumption.

Social – Values-led business, where decisions benefit customers, employees and investors.

We believe it is possible to make value-led business decisions while providing sustainable returns to investors. MYS is a living wage employer and will also offer the free use of amenity space to local community groups while maximising pastoral care and supporting the business leaders of the future.

Governance – Targeting B-Corp status to meet high standards of performance, transparency and accountability.

To achieve B-Corp status, MYS must demonstrate high social and environmental performance, make a legal commitment by changing the corporate governance structure to be accountable to all stakeholders and exhibit transparency, by allowing performance to be measured and accessible on the B-Corp profile.

What does this mean for investors?

The expansion of abrdn’s living capability through MYS allows us to offer client-led solutions in the PBSA sector delivering income along with the ability to create enhanced value from under-managed assets. We have access to extensive PBSA deal flow, and our experience will enable us to deliver on a comprehensive asset business plan.

Neil Slater, Head of Real Assets, abrdn said:

“PBSA investment solutions are an interesting and growing segment of the residential market offering income-driven returns and the ability to create a sustainable and values-led investment opportunity. In addition, well-run PBSA can achieve enhanced value from assets that are often under-managed. We’re excited to have MYS Student Living as an in-house provider of highest quality accommodation.”

David Mathewson, joint Managing Director, MYS said:

“Creating the MYS Student Living platform with abrdn harnesses two levels of expertise. abrdn is one of the largest residential fund managers in Europe and MYS is a first mover in the new category of values-led student housing. Both abrdn and MYS are focused on delivering assets with best- in-class ESG credentials that fulfil the clear and growing needs of both students and universities. The ambition is to provide investors with strong and dependable returns while creating the user-friendly, sustainable, low-carbon student housing of the future.”