Interesting, but wait for the sting regarding BX's other student property in King's Cross.
'The tallest tower to open next year in London's main financial district won't house bankers or office workers. It will be a student dormitory. The 33-story building's owner is Blackstone Group (BX), the world's largest private equity company. Blackstone entered the U.K.'s student-housing market four years ago and has so far invested more than 400 million pounds ($665 million). Rents have risen even as Britain endured its worst property slump in more than three decades. "There is a chronic imbalance between supply and demand in this sector," said Stuart Grant, the Blackstone executive who oversees the student housing unit. The average occupancy rate in the industry is 99%. In the City of London, 91% of office space is leased. The shortage of accommodations for London's growing student population has caused average rents to rise by an annual 5% over the last six years, Knight Frank said on Nov. 23. The figure compared with an average gain of 0.6% for all commercial properties, the London-based real estate broker said.
Nido Spitalfields, Blackstone's second student hall in the U.K. capital, will have space for 1,204 pupils paying as much as 300 pounds a week for an en suite room. The 344-foot skyscraper is due to open in the middle of next year. It will overlook Broadgate, the City of London office complex half-owned by the New York-based company, and will cost about 205 million pounds, according to Grant.'
And the sting?
'Most rooms in Nido King's Cross cost 245 pounds to 270 pounds per week. Internet access is free and students have the option of paying for a maid. That's expensive, even by London standards. For the same price, they could rent a local one-bedroom apartment with a separate lounge, kitchen, and bathroom.'
Yeah, but no maid. Pffft!
http://www.businessweek.com/globalbiz/content/dec2009/gb2009122_030120.htm
Nido Spitalfields, Blackstone's second student hall in the U.K. capital, will have space for 1,204 pupils paying as much as 300 pounds a week for an en suite room. The 344-foot skyscraper is due to open in the middle of next year. It will overlook Broadgate, the City of London office complex half-owned by the New York-based company, and will cost about 205 million pounds, according to Grant.'
And the sting?
'Most rooms in Nido King's Cross cost 245 pounds to 270 pounds per week. Internet access is free and students have the option of paying for a maid. That's expensive, even by London standards. For the same price, they could rent a local one-bedroom apartment with a separate lounge, kitchen, and bathroom.'
Yeah, but no maid. Pffft!
http://www.businessweek.com/globalbiz/content/dec2009/gb2009122_030120.htm