Cambridge County Council has bought a 251-bed purpose-built student accommodation property from Apache Capital.

Apache Capital Partners said it has sold Brunswick House, in Cambridge, to the UK local authority for £38m (€43.1m).

The sale amount reflects a net initial yield of 4.76%, a record in the UK for a direct-let asset student accommodation outside London/the M25, the real estate investment management firm said.

The latest disposal is the firm’s third student accommodation scheme sale for its social infrastructure platform.

Brunswick House, completed in July 2012 and comprising 231 en-suite cluster flats and 20 self-contained studio flats, is less than a 10-minute walk to Anglia Ruskin University’s Cambridge campus.

The direct let property was fully let for 2017/18 academic year.

Ben Pile, an investment director at Apache Capital Partners, said: “This successful sale underlines our decision to acquire this prime asset in central Cambridge, located close to the main campus of Anglia Ruskin University.

“The acquisition of a direct-let student property by an institutional-style investor emphasises the strength and quality of the asset. We continue to look for attractive opportunities in our core sectors of student, healthcare and build to rent, focusing on prime locations and where the supply/demand dynamics remain compelling.”

Jamie Snary, asset management director of Apache Capital Partners, said: “This sale to Cambridge County Council is a great example of a local authority investing back into their local community with the acquisition of this high-quality purpose-built student accommodation asset with its exceptionally strong occupancy track record and defensive income profile.”

Richard Jackson, co-founder and managing director of Apache Capital Partners, said: “This sale, for a record market yield for direct-let student accommodation outside London/the M25, reflects our strategic focus on investing early into alternative real estate sectors whose performance fundamentals are in part underpinned by limited high-quality supply and non-discretionary spend.”