UK student accommodation developer and manager Unite Students has acquired an asset under development in the northeastern UK city of Durham for £34 mln (€39 mln).
The forward-funded asset will be opened in September 2018 and provide housing for 363 students.
The property is expected to deliver a yield on cost of 6.4% in its first year of operation. Based on current valuations, the asset will be valued at a yield of 5.5%, resulting in a profit on cost of around £5 mln. The acquisition will be funded from proceeds from recent Unite disposals.
Richard Simpson, group property director at Unite Students, said: ‘This latest acquisition further extends our high-quality development programme in a strong regional location where there is strong demand for purpose built student accommodation. Our strategy remains focused on high quality Universities like Durham, where we see sustainable growth.’
