Newmark Grubb Knight Frank, working with Knight Frank’s Student Property department, is marketing a proftolio of UK student properties.
The portfolio is being sold by Guernsey-based The International Mutual Fund PCC Ltd, who hold the currently suspended MSA Fund. The sale has been brought about in order to restore liquidity to this vehicle.
The portfolio provides accommodation for 5,507 students across core UK University cities, including London, Manchester, Oxford and Edinburgh.
Over 94 percent of the portfolio lies in cities with two or more universities, allowing access to 710,000 full time students (42 percent of the total full time UK student population), at some of the UK’s most prestigious Higher Education Institutions.
The portfolio has strong lettings velocity and occupancy rate. It has reversionary income potential and gross income for year September 2015 / 16 is projected at circa £37 million.
There has been unprecedented inward investment into UK student accommodation in 2015. The market has seen sector transactions exceed £3.3 billion within the first five months of 2015.
International capital has been attracted by consistent year on year annual rental growth underpinned by the projected growth in student numbers.
The number of overseas students studying in the UK is of particular interest because numbers increased by 41.5 percent in the decade to 2013/2014.
Jimmy Kuhn, president and David Colen, managing director, Newmark Grubb Knight Frank commented: “We know 2015 will be a record year for student housing investment and this is a unique opportunity to acquire a portfolio of high quality assets strategically located across the UK.”
Offers in excess of £400 million are invited.
