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Sanctuary Housing Student Portfolio Sale Continues Despite Pricing Review
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Sanctuary Housing has confirmed that the sale of its student accommodation portfolio is still moving forward, although the prospective buyer has requested a review of pricing assumptions due to changing economic conditions.
The UK-based housing association disclosed the update in its latest annual report, stating that the sale process remains active despite new market challenges emerging after the financial reporting period. The development comes months after reports suggested that Global Student Accommodation had agreed to acquire the portfolio in a deal worth around £400 million.
The planned transaction marks a significant move for Sanctuary housing, which has been reshaping its property portfolio to focus on its core social housing mission while unlocking capital for future investment.
Buyer Revisits Pricing Amid Market Uncertainty
According to the annual report, Sanctuary housing is "progressing the sale" of the majority of its student portfolio, which currently provides accommodation to around 13,000 residents.
However, after the close of the financial year, the buyer requested a reassessment of the agreed pricing, citing macroeconomic changes and shifting market conditions.
Although Sanctuary housing declined to comment further on the negotiations, it confirmed that discussions remain ongoing.
Industry reports published last year identified Global Student Accommodation as the preferred buyer after competing bids from several major investors, including Unite Group and private equity firm Apollo.
Sale Supports a Long-Term Investment Strategy
The sale forms part of Sanctuary Housing's wider strategy to strengthen its balance sheet and reinvest funds into affordable and social housing developments.
In its annual report, the organisation said it continues to review its assets to ensure they support its long-term social purpose.
Alongside the proposed sale, Sanctuary housing also completed disposals of selected shared ownership properties and is considering additional asset sales to generate funding for future housing projects.
The organization stated that these decisions are intended to create greater financial flexibility while maintaining services for existing residents.
Portfolio Includes 21 Purpose-Built Student Accommodation Properties
The portfolio includes 21 purpose-built student accommodation properties spread across the UK.
Eight properties are located in London, while the remaining student housing sites are situated in Bradford, Brighton, Dundee, Falmouth, Glasgow, Liverpool, Manchester, Ormskirk, Preston and Salford.
The purpose-built student accommodation portfolio was built over approximately 15 years through a combination of acquisitions and mergers. Sanctuary housing first explored selling the assets in late 2024 as part of its long-term financial strategy.
If completed, the acquisition would significantly expand Global Student Accommodation's presence in the UK student housing market.
Financial Performance Remains Stable
Alongside the portfolio update, Sanctuary housing reported an operating surplus of £239 million for the 2025–26 financial year, compared with £216 million in the previous year.
The organisation completed 790 new homes during the year, down from 838 previously. Housing starts also declined from 3,307 to 2,469.
Chief Executive Craig Moule said the organisation had maintained a strong financial position with continued revenue growth and stable operating margins.
He added that proceeds from the proposed sale would help Sanctuary housing recycle capital into existing homes and future developments while ensuring decisions remain aligned with the organisation's long-term objectives.
What the Sale Means for the UK Student Housing Sector
The proposed acquisition reflects continued investor interest in the UK's student housing market despite ongoing economic uncertainty.
Large portfolios of purpose-built student accommodation remain attractive to institutional investors because of strong demand from domestic and international students.
Should the deal with Global Student Accommodation proceed, it would represent one of the largest student housing transactions in recent years and further consolidate ownership within the UK's PBSA sector.
As negotiations continue, Sanctuary housing has indicated that it will only complete the transaction if it supports both its financial strategy and long-term commitment to social housing.