American investment corporation LaSalle Investment Management have expanded their UK student accommodation portfolio once again with the purchase of three more completed developments from around the UK.
The portfolio of three properties; The Hub, Mansion Mews and Shand House, is managed by Mansion Group. Purchased from IP Global for £46.5 million and representing an initial NET yield of 5.9%, the acquisitions mark the second UK student property investments from LIM in the past week.
Last week we reported that LaSalle had purchased the King Square Studios development on behalf of a fund for £33.5 million. These latest acquisitions are continuing to demonstrate the ongoing strength of the UK’s student properties market, with a forecasts being made for a potential £4bn worth of transactions to be completed by the end of the year.
In the final quarter of 2014, interest in student accommodation from large institutions and corporations is expected to continue with a number of high profile student property portfolios and developments up for sale. American student property giant Greystar has expressed interest in further adding to their assets in the UK, having made a bid of £1.3 billion for one of the UK’s largest student accommodation portfolios.
With an increasing number of institutional student property purchases occurring, it is an excellent time to invest in off-plan student accommodation.
A number of our student accommodation developments have been structured to attract institutional or corporate buyers, offering investors an exit strategy and a unique opportunity for uplift on their initial investment.
The Glass Works in Newcastle offers a NET rental return of up to 9.62% in the first year and is located within 1 mile of Newcastle University and Northumbria University.
Holmes Street offers an excellent NET rental return of 10% with a 5 year rental assurance and is located just 250m from the University College of Football Business.