Tokoro Capital Secures £27.35M for Student Housing Expansion

London-based real estate investment firm Tokoro Capital has clinched £27.35 million in funding from Bank Leumi (UK) to bolster its student housing platform, a move that underscores the robust demand for quality accommodation in Britain’s university cities.

The investment will fuel Tokoro Capital’s ambition to develop and enhance purpose-built student accommodation in key locations across the UK. With a sharp focus on cities with strong academic hubs and limited housing options, the firm is positioning itself to capitalise on a sector that continues to thrive despite economic headwinds. The UK’s student housing market remains a beacon of resilience, driven by a growing university-age demographic, a steady influx of international students, and a persistent shortage of high-quality accommodation.

Bank Leumi (UK), part of the Israel-based Bank Leumi Group, has shown clear confidence in Tokoro’s strategy and the broader student housing sector. The lender’s track record in backing UK real estate ventures highlights its view of student accommodation as a stable, high-yield asset class with enduring appeal. This £27.35 million injection will enable Tokoro to expand its portfolio through strategic acquisitions and upgrades, ensuring properties meet the modern expectations of students for well-designed, professionally managed living spaces.

Tokoro Capital’s approach goes beyond mere property acquisition. The firm is committed to redeveloping and modernising assets to create environments that enhance the student experience. “The student housing market is chronically undersupplied, and demand continues to outstrip availability,” a Tokoro Capital spokesperson noted in a recent statement. “This funding empowers us to deliver purpose-built accommodation that aligns with the needs of today’s students, from cutting-edge facilities to prime locations near universities.”

The resilience of the student housing sector is well-documented. Even during economic turbulence and the disruptions of the COVID-19 pandemic, purpose-built student accommodation has maintained high occupancy rates and stable rental income. Industry observers point to the sector’s ability to attract both domestic and international students as a key factor in its enduring appeal to investors. With university towns facing ongoing shortages of quality housing, Tokoro’s expansion plans are well-timed to address this gap.

This latest funding will accelerate Tokoro Capital’s acquisition pipeline and support enhancements to its existing properties. The firm’s collaboration with Bank Leumi (UK) signals strong institutional backing for the sector, which continues to draw interest from both private and institutional investors. As the new academic year looms, the demand for high-quality student housing is set to intensify, positioning Tokoro Capital for sustained growth in a market ripe with opportunity.