Apache Capital Partners and Investra Development have acquired a 198-bed student accommodation development with planning consent in Southampton, UK from house builder Orchard Homes. The scheme has a total development value of c.£24.9 mln (€30 mln).
'We are delighted to acquire this outstanding development scheme at 14 Cumberland Place, which will create a new standard of aspirational, city centre student living in Southampton that is currently not available and for which there is strong demand,' commented Richard Jackson, co-founder and managing director of Apache Capital Partners.
Apache Capital Partners, a London and Gulf based real estate investment management firm, completed the off-market transaction via its joint venture with privately held Investra Development for Apache's Social Infrastructure Investment Platform.
The scheme will comprise a mix of studios and two and three bed cluster flats over 12 storeys, plus dedicated communal facilities. Practical completion is expected in time for the 2018/19 academic year and construction is due to begin within the next few months.
'This acquisition is in-line with Apache Capital’s long term investment strategies which deliver sustainable returns to investors and landmark assets offering very high quality amenities, facilities and services for our customers who live there,' added Jackson. 'We continue to grow our pipeline of potential student accommodation investments in prime university cities in the UK.'
With the completion of the project, Apache Capital will have developed and invested in a combined total of 1,774 student accommodation beds across five UK assets in Cambridge, Ipswich, London (two) and now Southampton, with a total value of approximately £256 mln.
'Investra is pleased to have partnered with Apache Capital for the second time with this acquisition on Cumberland Place in Southampton, demonstrating our appetite for very high quality student accommodation developments in cities with attractive supply/demand fundamentals,' commented Nick Hornby, development director of Investra Development. 'We continue to
pursue further opportunities and look forward to continue to work in partnership with Apache Capital.'
O’Connell East are the architects to the scheme.
Vendor Orchard Homes was advised by Whitmarsh Holt Young.
