Singapore's Far East Orchard, part of the country's largest private property developer, Far East Organization, has acquired a purpose-built student accommodation asset in Southampton, UK for £13.9 mln (€17 mln).
The property, Emily Davies House, was sold by Empiric Student Property as part of its strategy of disposing non-core properties.
The sale price reflects a net initial yield of 5.7%, with pricing ahead of the 30 June 2022 book value.
Duncan Garrood, CEO of Empiric Student Property, said: 'The sale of Emily Davies is in line with our non-core disposal programme and releases capital for recycling into our core portfolio refurbishment programme.
'Against the backdrop of wider macro-economic uncertainty, this sale demonstrates the continued attractiveness and resilience of purpose built student accommodation.'
Emily Davies comprises three-to-four-bedroom apartments with shared bathrooms and kitchens and is currently configured to provide 180 beds. The property is located within walking distance of Southampton Solent University and the city centre.
The sale remains conditional on the completion of minor works on or before 30 April 2023. Once the sale concludes, Empiric's disposal programme of non-core asset will have generated around £71.5 mln.
