Gerald Eve, acting jointly with Deloitte and Knight Frank, has concluded the UK’s largest ever single-asset student housing sale on behalf of Aston Student Village (a JV between Lloyds Banking Group, Aston University and Derwent).
Unite Students and Singaporean wealth fund GIC, have acquired Aston Student Village in Birmingham for £227 million, reflecting a sub-5% yield.
The 3,067-bed complex, which is part of the Aston University campus, will produce a gross annual income of approximately £13.6 million for LSAV, Unite and GIC’s 50:50 joint venture. They anticipate that the yield will grow to over 6% following further investment ahead of the 2017/18 academic year.
Nick Ogden, partner at Gerald Eve, said: “This sale illustrates the continued interest from domestic and overseas investors chasing prime UK student accommodation. We had 12 strong offers from a variety of large, global investors which helped to drive pricing for what was a unique opportunity of scale, quality and growth potential. It was a complex transaction, balancing client and purchaser requirements with existing student residents to ensure a smooth transition of ownership.”