LaSalle completes purchase of two prime student accommodation blocks in Newcastle for GBP23.1 million
LaSalle Investment Management has completed the acquisition of Camden Court and Magnet Court, two prime student accommodation blocks in the heart of Newcastle’s City Centre, at a price of GBP23.1 million and reflecting a net initial yield of 5.65%.
Camden Court serves Northumbria University whereas Magnet Court, just 200 yards from Newcastle University’s new Business School under construction on the former Scottish & Newcastle brewery site, serves Newcastle University students.
In total, the properties comprise 456 ensuite student bedrooms very close to their respective campus sites. Both are let to Student Accommodation specialist, Unite, for 19.5 years with uncapped annual RPI rental uplifts.
Chris Fry, Fund Manager at LaSalle, says: “This acquisition provides our client with an inflation proof income stream derived from prime property in a city where students are always keen to study and live.”
Richard Walsh, Director of GVA’s National Markets Team who acted for LaSalle, says: “This is a fantastic acquisition and is exactly what the investment market wants at the moment, strong indexed linked income for nearly 20 years in a sector which is set to see continued strong rental growth.”
Both properties were acquired from Aviva Investors who were advised by Knight Frank.