New U.K. student accommodation fund closes on $81m

Sun Capital Assets, a wholly owned subsidiary of Metro Holdings, has launched a purpose-built student accommodation fund in the United Kingdom, according to several news reports.

Sun Capital formed a joint venture partnership with Lee Kim Tah Holdings and Aurum Investments to set up the fund, known as Paideia Capital U.K. Trust. Sun Capital will take a 33.33 percent stake and Lee Kim Tah and Aurum will own the remaining 66.67 percent of each vehicle.

The vehicle has already closed on £60 million ($81 million) and identified its first acquisition, a seed property known as Red Queen, Warwick. The fund will aim to grow its U.K. portfolio to £150 million ($202 million).

The three partners each contributed £18 million ($24 million) to the first closing of the fund and third-party investors contributed the remaining £6 million ($6 million), according to The Business Times.