Orka Investments has successfully established a joint venture with a leading global real estate investor, marking a significant move in the UK purpose-built student accommodation (PBSA) sector. This collaboration has resulted in the acquisition of a portfolio encompassing several strategically positioned PBSA schemes throughout the United Kingdom.
The joint venture commenced its operations through three off-market acquisitions in December 2025, backed by financial support from Investec. This initial portfolio comprises 1,300 bedrooms, with a remarkable 90% of the income derived from properties located in proximity to Russell Group university areas. The three sites acquired are situated in the vibrant cities of Aberdeen, Birmingham, and Glasgow, each selected for their strong student demand and potential for growth.
Strategic Focus on Affordability and Quality
The acquired portfolio features a well-balanced mix of unit types, prioritising both affordability and proximity to essential university facilities. These factors are increasingly critical for students, particularly in the context of rising living costs. By enhancing well-located assets into high-quality, modern student accommodation, the joint venture aims to tackle the ongoing structural undersupply prevalent in markets where new developments face constraints due to planning challenges and escalating construction expenses.
Partnership and Financing Insights
“We are pleased to support this joint venture between Orka and a leading global institutional real estate investor, as it establishes and scales its PBSA platform. Our financing has been structured to provide the certainty and flexibility required to execute its strategy reflecting Investec’s experience in supporting clients operating in specialist living sectors,” stated Sebastian Walley, from Investec Real Estate. This strategic financing confirms the confidence in the joint venture’s potential to thrive in the competitive PBSA landscape.
Looking ahead, the partnership is keen to expand its portfolio through additional acquisitions of existing PBSA assets in key Russell Group university cities. The focus will be on properties where value can be unlocked through targeted repositioning strategies. These strategies will encompass enhancements aligned with Environmental, Social, and Governance (ESG) criteria as well as investments in amenity spaces, ensuring that the assets remain competitive within their respective markets.
Market Context and Future Opportunities
The PBSA market is currently experiencing a paradigm shift, characterised by heightened volatility regarding international student enrolments at UK universities. However, a return to pre-Covid rental growth averages presents new prospects for discerning investors and operating partners. Raoul Malhotra, Founder and CEO of Orka Investments, remarked, “This partnership underscores our ability to source off-market opportunities that combine defensive income with meaningful value creation. UK PBSA continues to demonstrate exceptional resilience, and we are proud to align with one of the world’s most respected institutional investors and secured financing from UK leading PBSA lender, Investec, as we scale our platform.”
As the joint venture moves forward, it remains committed to creating affordable yet best-in-class student accommodation across various submarkets, all while maintaining defensive income characteristics. The successful execution of these strategies will not only address the needs of students but also enhance the overall attractiveness of the UK PBSA market for future investments.
In March 2025, BGO Strategic Capital Partners entered into a partnership with Orka Investments to recapitalise a portfolio of two significant PBSA developments in the UK. This collaboration further illustrates the growing interest and investment in the PBSA sector, as stakeholders recognise the long-term potential and stability that purpose-built student accommodation offers in today’s dynamic market.