Penny Hughes is the chairman of IQ Student Accommodation, one of the largest purpose-built student accommodation providers in the UK. She has made significant investments in this area over the years. Recently, Goldman Sachs and the Wellcome Trust sold IQ Student Accommodation to Blackstone for £4.7 billion, netting them huge profits. Hughes’ investments in student housing have paid off handsomely as demand continues to rise with increasing international student numbers.
Penny Hughes invested early in UK’s student accommodation industry
Penny Hughes first started investing in student housing in the UK in 2007 via the Wellcome Trust, one of the country’s largest charity organizations. In 2013, Goldman Sachs also entered the sector partnering with Greystar Real Estate. Three years later, Goldman Sachs and the Wellcome Trust merged their student housing portfolios, forming IQ Student Accommodation with Penny Hughes as chairman.
IQ Student has expanded rapidly under Penny Hughes’ leadership
Under Hughes’ leadership, IQ Student Accommodation has expanded rapidly through acquisitions and new developments. Today, it has 67 facilities with 28,000 beds across 27 university towns and cities. IQ aims to increase capacity by another 4,000 beds catering to rising international student demand.
The £4.7 billion sale of IQ made huge profits for investors
Goldman Sachs and the Wellcome Trust invested £2 billion initially to form IQ Student Accommodation in 2016. Just four years later, Blackstone acquired the company for £4.7 billion in February 2020. Goldman Sachs pocketed an estimated £3.4 billion from the sale, demonstrating the strong capital appreciation of student housing assets under Penny Hughes’ leadership.
Demand keeps rising with increasing international student numbers
The UK hosts over 460,000 international students, with China sending the most. The Boris Johnson government aims to further increase this number by one-third. Along with Brexit making the UK more open to overseas investment, student accommodation needs will continue to grow. Penny Hughes’ early bet on UK student housing has paid substantial dividends.
As chairman of IQ Student Accommodation, Penny Hughes invested early in the UK’s purpose-built student housing sector. Her investments have appreciated considerably on the back of rising international student demand, realizing massive profits for shareholders with the £4.7 billion sale to Blackstone.