Student accommodation provider UPP has acquired a purpose-built residence at Swansea University Bay Campus in Wales, UK, from urban regeneration specialist St Modwen for £87.3 mln (€99.7 mln) in cash.
The disposal by St Modwen follows a competitive sales process and was broadly in line with book value, the company said. The gross consideration for the 45-year leasehold asset is £139.3 mln, representing a yield of 5.7%.
Totalling 2,005 rooms, the student accommodation was built as part of a £450 mln development by St Modwen, with the most recent units opening to new students in September 2017.
Mark Allan, CEO of St Modwen, said the proceeds from the sale will be used to reduce group borrowings as well as fund new, higher growth projects, both within the campus and further afield, in line with our strategy. ‘We continue to work in close partnership with Swansea University on future developments on the site,’ he said.
