LaSalle buys UK student housing for French pension fund

Global investment manager LaSalle has made its second acquisition in the UK on behalf of French public service additional pension scheme ERAFP with the purchase of a student housing complex in Kingston-on-Thames.

The freehold property on Penrhyn Road was bought from a private vendor at a yield of 5.5%. The price was not disclosed.

The 3,500 m2 purpose-built facility was constructed in 2014 and is managed by Victoria Hall. Its 1,221 beds arranged as 109 single studios and six twin studios are directly let to students. The building is located in a prime student accommodation location between the main Kingston University campus and the town centre.

LaSalle was awarded a 10-year European investment mandate by ERAFP in Q1 2015. Its first purchase was a freehold retail block on New Street and Temple Street in Birmingham, UK, for £14.9 mln (€20.5 mln).

Beverley Shadbolt, fund manager, LaSalle Investment Management, said: ‘This acquisition reflects our strategy for ERAFP to invest in high quality core assets across Europe, including alternative real estate sectors such as student housing, which is a sector in line with ERAFP’s socially responsible investing strategy.’

Bidwells acted for LaSalle Investment Management. The vendor was advised by Savills.