Investment manager Cordea Savills has completed the development of Sugar House Close halls of residence in central Edinburgh on behalf of its Student Hall Fund.
Investment manager Cordea Savills has completed the development of Sugar House Close halls of residence in central Edinburgh on behalf of its Student Hall Fund.
The fund developed the halls after purchasing the site and buildings of a redundant brewery for an initial sum of £8.25 mln (EUR 10.2 mln) in May 2011. The full project cost £28 mln.
Acquired as a forward-funding project with developer Watkin Jones, Sugar House Close provides 121 ensuite rooms, 151 studios and 28 'twodios'. Completed in August 2012, it is now fully let, having welcomed 300 University of Edinburgh students for the academic intake in September.
It is anticipated that the asset will deliver a net distribution yield of 6.5% per annum.
The Cordea Savills Student Hall Fund is a closed-ended Jersey property unit trust with an annualised target return of 10% over the life of the vehicle.
