Beyond the bed: Katch’s platform eyes growth in premium UK student accommodation

In the quiet corners of Mayfair and the bustling boroughs of London, a new blueprint for student living is rising from the ground up. UK-based Katch Investment Group is orchestrating a pivot that moves the firm from its traditional strength in real estate debt into the high-stakes world of equity development.

Youssef Sbai, managing director and partner, told IFN Investor that Katch has joined forces with Valpre Capital – which launched a Shariah residence venture in Athens in 2025 – to launch a new platform.

The platform venture, aiming to deliver 1,500 premium student beds across the UK by 2026, targets undersupplied hubs like London and Bristol, with a long-term eye on reaching a portfolio of 3,000 beds.

Launching the purpose-built student accommodation (PBSA) platform was something that came naturally to Katch. The firm already manages over EUR320 million (US$372.91 million) in ongoing equity developments.

Katch’s strategy is focused on "premium" beds, a term which Youssef is careful to distinguish from mere luxury. To him, premium means “modern, well-designed, highly-amenitized student units” that cater to the exacting standards of students from Asia to the US.

The focus is to capture the structural undersupply for international student lodging – a market with voracious demand, despite shifting economic winds.

Thriving market; with rivals like Blackstone, Greystar

Katch’s approach places it in direct competition with established giants like Blackstone’s iQ Student Accommodation and Greystar. These competitors have long dominated the market through massive scale and highly integrated operating platforms.

Katch’s PBSA spaces are designed with high-speed connectivity, wellness rooms and professional management that mirror hospitality standards. “It boosts your occupancy and rental growth,” Youssef explained, describing how quality design acts as a defensive shield against cooling rental markets.

Building in the current climate requires navigating a labyrinth of high land costs and construction inflation. Katch employs a "site selection discipline," focusing on brownfield spots with strong planning precedents to avoid unnecessary delays.

To keep costs in check, the platform utilizes early contractor involvement and fixed-price contracts to cap financial exposure. “We take [the construction] risk, we mitigate it, we make sure that we are capping that risk and then we provide an end product to these institutional investors,” Youssef said.

For the global Shariah investment community, the platform offers a point of entry into defensive UK real estate. The capital stack is designed to include Shariah compliant partners where relevant, seating them alongside Katch’s own regulated funds.

ESG a necessity, not luxury

Unlike larger funds that may focus on massive, impersonal blocks, Katch leans into thoughtfully designed, sustainable living spaces funded by off-market deal sourcing.

With a projected gross development value of up to GBP500 million (US$671.87 million), the platform anticipates a net internal rate of return between 15% and 19%. These returns are underpinned by a target exit multiple of 1.6x to 1.8x over a four-year investment horizon.

As the portfolio stabilizes, the expected buyers are the heavyweights of global finance: sovereign wealth funds and global pension funds. These institutional players are increasingly looking for ESG-compliant, operating assets that offer stable cash flows in a volatile world.

Sustainability, thus, is not an afterthought to Katch but a core component of its investment thesis. Youssef insists that ESG metrics are now mandatory to avoid "value destruction" in the long-term.

“ESG is not a luxury anymore. You have to build your scheme in a way that it will comply with the next 15, 20 or 30 years of regulations”.