Press Release – CoStar – 90 North Real Estate buys Exeter student homes scheme
90 North Real Estate has bought Exeter One, a student housing scheme next to the University of Exeter, from Chesterman Consultants for £18,575,000.
The freehold 219-bedroom purpose built student accommodation asset has sold at a price reflecting a circa 5.9% net initial yield and a value of £84,800 per student bedroom.
The building was constructed in 2010 and refurbished in 2013. The property is on the western boundary of The University of Exeter’s Streatham campus, just 300 yards from the University’s main entrance. Exeter City Centre is located 2.1 km (1.3 miles) to the south and connected by a regular direct bus route. Exeter One comprises 112 en-suite bedrooms, arranged in cluster flats, and 107 studio bedrooms offering a number of separate price points for students. The scheme has historically been 100% let with consistent year on year rental growth and is 100% let for the 2017/18 academic year.
John Yeend, Partner at 90 North, said: “We are delighted to have acquired this core student housing investment which will deliver excellent returns for our clients. UK student housing continues to offer a sound fundamental combination of strong unfulfilled occupier demand and limited supply, delivering inflation-tracking annual growth. This acquisition is the first in an ambitious programme of investments 90 North will be making in the student housing sector.”
Rachel Pengilley, Partner, Knight Frank Student Property, said: “The transaction demonstrates a continuing demand for the UK PBSA (purpose built student accommodation), particularly for assets that can demonstrate a strong track record of high occupancy and rental growth in key Russell Group University cities. Exeter has experienced strong lettings for the 2017/18 academic year with the majority of private sector schemes now fully let.”
Knight Frank Student Property advised Chesterman.