Sanctuary looking to sell 21 student accommodation schemes

Sanctuary has announced it is considering selling 21 student accommodation schemes to raise capital to improve its affordable housing stock.

The 125,000-home association, in a stock market announcement this morning, announced it is looking at options to sell more than 5,600 beds across 21 properties in eight different locations.

A spokesperson said: “Sanctuary is considering options for the potential sale of its student accommodation assets as part of its objective of unlocking and recycling capital for new investment in its existing affordable homes. “

The group’s student business posted revenue of £69.2m in 2023/24, up £8.6million on the previous year. Sanctuary Students provides 12,000 homes altogether across 39 locations. Its occupancy rate stood at 93% as of 31 March.

In its most recent annual financial statement, Sanctuary said it has been working to grow the efficiency of its student business, restructuring its portfolio, including acquiring external leases from third parties.

Sanctuary also said in its 2023/24 statement that it will “not prioritise new housing above reinvestment” in its existing homes. It increased its annual spend on existing stock by £1.3m to £80.2m in 2023/24.

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Ed Lunt, chief financial officer at Sanctuary, said: “Our thriving student accommodation business - which provides affordable places to live for individuals moving into higher education - is well established and well-placed to meet the growing demand for high-quality accommodation for domestic and overseas students.

“The potential sale is being considered as a route to unlocking and recycling capital for new investment in our existing affordable homes and the communities we serve for the benefit our customers.”

Sanctuary is one of several large housing associations looking at changes to enable it focus more on existing stock.

L&Q in May sold its strategic land business to Urban and Civic, while Clarion, which owns and manages 125,000 homes, announced it is planning a radical restructure to focus on improved housing management and customer service.