LaSalle Investment Management has finalised a deal to purchase and fund the construction of a student hall in London for £32 mln (EUR 38 mln) on behalf of an institutional client. The purchase price reflects a net initial yield of 6.27%.
LaSalle Investment Management has finalised a deal to purchase and fund the construction of a student hall in London for £32 mln (EUR 38 mln) on behalf of an institutional client. The purchase price reflects a net initial yield of 6.27%.
Known as The Quadrant, the scheme will comprise 258 en-suite cluster bedrooms and 70 studio units along with some 17,000 square feet of commercial space.
The University of the Arts in London has taken a 21-year lease with a break at year 15 across all the en-suite cluster bedrooms, whilst the remaining studios will be leased to Watkin Jones on similar terms.
The student accommodation will be managed by Fresh Student Living. Housing charity Acme has taken a lease on an element of the commercial space which will provide affordable studios for fine artists. The net income for the property will be around £2.1 mln per annum and will be subject to fixed annual uplifts at 2.50%.
Construction has started on site and the scheme is due to be delivered for the start of the 2013/14 academic year.
The transaction follows recent student investments by LaSalle in Cambridge and Newcastle.
Jones Lang LaSalle advised Watkin Jones, while Lawson & Partners represented LaSalle.
