Hines Global REIT II Buys UK Student Housing Property from W.P. Carey REIT Affiliate

Hines Global REIT II Inc., a publicly registered non-traded real estate investment trust, has purchased Queen’s Court, a 395-bed student housing property located in Reading, United Kingdom, for approximately $65.3 million (£49.2 million assuming a rate of $1.33 per GBP as of the acquisition date), according to a filing with the Securities and Exchange Commission.

The sellers are Crown Students LLP and CPA 18 Pan-European Holding Cooperatief U.A., the latter a Netherlands-based subsidiary of Corporate Property Associates 18 – Global, a non-traded real estate investment trust sponsored by W.P. Carey (NYSE: WPC).

Queen’s Court, originally built as an office building in 1985, was renovated in 2016 and converted into a student housing property. The property is adjacent to the University of West London and 15 minutes by bus to the University of Reading’s Whiteknights Campus. Queen’s Court is 100 percent leased.

Hines Global REIT II funded the acquisition using proceeds from its public offering and an advance under a loan agreement with affiliate Hines Interests Limited Partnership.

The estimated going-in capitalization rate for Queen’s Court is approximately 6.2 percent. The estimate is determined by dividing the projected property revenues in excess of expenses for the first fiscal year by the net purchase price (excluding closing costs and taxes).

In other Hines Global REIT II news, the company recently filed a registration statement with the SEC for a $2 billion follow-on offering with four new share classes of commons stock and $500 million distribution reinvestment plan shares.

Hines Global REIT II was declared effective in August 2014 and raised $357 million in investor equity, as of the second quarter of 2017. The company owns a portfolio of seven properties with a total acquisition cost of approximately $614.7 million, according to Summit Investment Research.

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