Blackstone Group’s £4.66 Billion Acquisition of U.K. Dorms from Goldman

Jones Day represented an affiliate of Goldman Sachs and The Wellcome Trust in the acquisition. Goldman Sachs International, Morgan Stanley and Eastdil Secured advised Goldman Sachs’s merchant banking division and the Wellcome Trust on the sale, according to the statement. Bank of America Corp., Citigroup Inc. and Savills Plc served as property adviser to Blackstone and Kirkland & Ellis and Gowling WLG served as legal counsel.

Blackstone Group Inc. agreed to buy the iQ Student Accommodation business from Goldman Sachs Group Inc. and the Wellcome Trust in the largest-ever private real estate deal in the U.K.

Funds managed by Blackstone will pay 4.66 billion pounds ($6 billion) for the business, which owns and manages properties with more than 28,000 beds in the U.K., according to an emailed statement from Goldman Sachs. The deal is subject to regulatory approval.

Blackstone plans to invest heavily in the business, which has a development pipeline of about 4,000 beds. A substantial proportion of the 77 existing properties are also in need of refurbishment, according to a person with knowledge of the matter.

Kirkland & Ellis advised Blackstone with a team led by London transactional partners Michael Steele (Picture), Carlos Gil Rivas and Dipak Bhundia; tax partner Tim Lowe and technology & IP transactions partner Emma Flett.

The Jones Day team advising Goldman Sachs and The Wellcome Trust was led by Giles Elliott, Tony Whall, and David Smith (all London).

Involved fees earner: Giles Elliott – Jones Day; David Smith – Jones Day; Anthony Whall – Jones Day; Dipak Bhundia – Kirkland & Ellis; Emma Flett – Kirkland & Ellis; Carlos Gil Rivas – Kirkland & Ellis; Timothy Lowe – Kirkland & Ellis; Michael Steele – Kirkland & Ellis;

Law Firms: Jones Day; Kirkland & Ellis;

Clients: Blackstone Group L.P.; Goldman Sachs; Wellcome Trust;