Derwent FM signs student joint venture

02 April 2013

Derwent FM has signed a 10-year joint venture agreement (JV) with Acis Group to co-own and manage 1109 units at two student residences, which were acquired from the Beach Student Accommodation Fund in a deal worth £40 million.

The JV, called Eione LLP, will see Acis Group take a 51 per cent share with Derwent FM owning 49 per cent. The concept is for Eione is to be a one-stop-shop for student accommodation and facilities management.

Both residences – the Trigon in Sheffield and Raleigh Park in Nottingham, will be operated by Derwent Students, the specialist student accommodation division set up by Derwent FM in January.

Acis Group is a not-for-profit organisation established in 1999 and provides over 5,000 affordable homes across Lincolnshire, Nottinghamshire and South Yorkshire. It also offers low cost shared-ownership housing, as well as sheltered housing across nine schemes in West Lindsey.

Acis Group says the move into student accommodation will generate a positive return that will be invested into social housing. Derwent FM re-invests 75 per cent of its profits from student services and facilities management activity into developing new properties and maintaining Derwent Living’s existing housing stock.

Paul Wisher, new business and development manager, Acis Group, said: “Acis Group is delighted to have joined forces with Derwent FM to support our new student accommodation business. Our decision to invest £40m in student accommodation was underpinned by the knowledge that we would have an experienced and successful partner to deliver high quality services to our students.

“We believe that both Acis Group and Derwent FM share a business ethos dedicated to quality and success with high performing teams delivering an exceptional service to customers. We are confident of the success of our new business.”

Kate Outram, head of Derwent Students, said: “This JV is a strategic long-term partnership, which will see Acis Group and Derwent FM work together to support student learning and living environments and enhance the student experience.

“Our investment in both staff and students will deliver major benefits, which will allow us to continue to invest in our services as well as support affordable, social and not-for-profit housing.

“Derwent FM has an excellent track record in listening and providing what students want and Derwent Students will continue to deliver these exceptional standards of service to our student communities across the country.”

Derwent FM provides a full range of student accommodation and hard and soft facilities management services. Derwent Students manages a portfolio of over 10,000 beds, making it the fifth largest student operator in the UK.