Blackstone. Beds for an endless pipeline.
Blackstone has bought thousands more UK student housing units. The gamble is that universities keep attracting overseas students who pay a premium.
THE GIST ON BLACKSTONE: "Blackstone Betting on Students"
What has Blackstone done?
Blackstone, the world's biggest private equity landlord, has snapped up thousands more student housing units in the UK. The logic: demand for beds keeps rising, especially from international students. Universities rely on their fees, students need somewhere to live, and rents keep climbing.
What is the real bet?
A big bet on an endless pipeline of foreign students coming to the UK. Blackstone's model assumes universities can keep attracting, and charging, overseas students willing to pay a premium.
That rests on higher education being totally unshakable. If international numbers slip, or degrees lose their shine, it looks a lot riskier.
What does it show?
Student housing has become a financial product, not really a place to live. Wall Street is banking on a continuous churn of new arrivals.
It shows how the business of education underpins the housing market, and how exposed both are if the model falters.
Is student housing a fair target for investors?
Your take. One tap, then see how everyone else voted.
Quick answers
What has Blackstone bought?
Thousands more student housing units in the UK.
What is the assumption behind it?
That universities can keep attracting and charging overseas students who pay a premium.
What is the risk?
If international numbers slip or degrees lose their shine, the investment looks much riskier.
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