Rockspring Property Investment Managers has entered the student accommodation market for the first time through the acquisition of 123 Fountainbridge, Edinburgh, in joint venture with Mansion Group. The £14.2 mln (EUR 16.2 mln) acquisition was made on behalf of the Rockspring UK Value Fund.
Rockspring Property Investment Managers has entered the student accommodation market for the first time through the acquisition of 123 Fountainbridge, Edinburgh, in joint venture with Mansion Group. The £14.2 mln (EUR 16.2 mln) acquisition was made on behalf of the Rockspring UK Value Fund.
This is the fund's 10th investment since its launch in February 2010.
The purpose-built development, which was constructed in the mid-1990s, is arranged over five floors and provides 278 bedrooms. These are divided into flats consisting of five beds, a kitchen, living room and either one or two bathrooms. The development is less than 10 minutes walk to Edinburgh’s main shopping area and the Haymarket train station.
Rockspring believes the move into student housing will prove beneficial, as the counter-cyclical nature of higher education provides a relatively stable and secure market. While the demand for high-quality student accommodation is steadily increasing, availability remains low, providing Rockspring with the opportunity to take advantage of this supply-demand imbalance, the company said in a press release.
Rockspring partnered with Mansion Group for this acquisition. With 11 developments across the UK, Mansion Group has extensive knowledge and experience in the student accommodation market and has a particularly strong track record in refurbishment and reconfiguration. It is anticipated that significant value can be added to the asset, with Mansion Group overseeing a planned refurbishment programme and providing ongoing management services.
Richard Bains, fund manager of the Rockspring UK Value Fund, commented: 'The acquisition of the Fountainbridge site represents a good opportunity for us to exploit the rapidly developing student accommodation market, while the asset itself provides significant potential for asset management. We are keen to carry out a considerable refurbishments programme at the property, which should enable us to deliver further returns to investors.'