Legal & General Investment Management Real Assets has purchased a student block in the UK city of Winchester for £31 mln (€36 mln).
The 399-bed Queens Road Student Village is destined for L&G's LPI Income Property Fund, taking the total volume to more than £870 mln since its launch in 2010.
'The purchase of Queens Road Student Village in Winchester is in line with our investment strategy for the Fund, offering a secure long term income stream from an investment grade University,' said Derek Gilby, senior fund manager at L&G. 'We are currently in a low interest rate environment and with annual rental uplifts linked to inflation we can ensure stable and resilient returns over the long term.'
The property is let to the University of Winchester for 40 years at an annual rent of £1.3m, with annual increases linked to the retail price index. It is located within the University of Winchester Campus in Winchester city centre.
Hanover Green and Savills advised L&G while Doherty Baines acted for the vendor.
