Russian investment vehicle LetterOne has entered into an agreement to purchase a portfolio of more than 1,000 student rooms for a combined total of more than £140 million.
The group, comprising of high net worth investment partners Mikhail Fridman, German Khan and Alexei Kuzmichev, have exchanged contracts on the 253-bed Paris Gardens development for £61m, in addition to placing a forward commitment on a further four student properties totalling 839-beds for £83m.
The acquisitions, located around the UK, have been agreed with the development company McLaren Properties and represent only a small part of LetterOne’s ambitions within the UK’s student accommodation market.
These latest purchases come in the wake of LetterOne completing their acquisition of the 2,150-bed Pure student housing portfolio for £532m earlier this week, highlighting the significant push that the investment group is looking to make in the UK. The continued growth of the student accommodation asset class has been driven in recent months by overseas investors investing more in the UK, with American company LaSalle Investment Management acquiring £80m worth of student properties at the end of last year.
As student property continues to grow and attract interest from institutional investors, now is an excellent time to invest in the asset class.
Colne Hall Huddersfield is an exceptional opportunity to invest in one of the UK’s most undersupplied university towns, with 9% NET rental return contractually assured for 5 years and interest on deposit. Standing just 0.4 miles from the University of Huddersfield and directly next to Kirklees College, it is perfectly located for students in the area.
For more information on Colne Hall, please click here.