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Student Dorms Drawing Billionaires Have Record Sales in U.K.

For the first time the value of acquisitions in the U.K. student-accommodation market beat the U.S., where $3 billion was spent on this type of property during the same period.

For the first time the value of acquisitions in the U.K. student-accommodation market beat the U.S., where $3 billion was spent on this type of property during the same period.

Source: Getty Images

Goldman Sachs Group Inc., Russian billionaire Mikhail Fridman and Canada Pension Plan Investment Board are among buyers who have spurred investments in U.K. student-housing to a record this year.

Investors agreed to deals worth a total of $6.5 billion in the first nine months, broker Savills Plc said in a report on Monday. Purchasers of U.K. student properties are attracted by the strong overseas demand for university places in London, which increases competition for accommodation and pushes up rents, said Paul Tostevin, an associate director at Savills.