Bridges Ventures/Chancerygate JV sells student accommodation for GBP60.3m to LaSalle
A joint venture between Bridges Ventures and Chancerygate has sold The Curve, a student accommodation development in London’s Aldgate, to LaSalle Investment Management for GBP60.3m reflecting a yield of six per cent.
Bridges Sustainable Property Fund and Chancerygate jointly acquired the site south of Whitechapel High Street in 2010 to target growth in the area based on increasing student and investor demand in improving locations such as Zone 1 east London.
The scheme was development managed by Chancerygate and provides 350 direct-let student rooms and a 13,000 sq ft supermarket let to Tesco. As part of Bridges Ventures investment criteria, a number of environmental and sustainable initiatives were incorporated into the construction and have contributed to reduced operating costs.
The property is fully let to UK and overseas students seeking good quality accommodation close to Central London.
Simon Ringer, head of property funds at Bridges Ventures, says: “This investment typifies Bridges’ strategy of investing at an early stage in growth locations and niche sectors where property values are driven by rising occupational demand, improving infrastructure and growing institutional appetite.
“By working with a skilful development partner such as Chancerygate, we have taken a brown field site and created a high quality, sustainable development and operating business which has generated strong returns for our investors.”
Eddie Cook, managing director of Chancerygate, says: “From the outset our strategy was to deliver a first-class income producing product for ultimate sale to an institutional investor. The yield achieved illustrates the strength of institutional interest in an asset of this quality. We are proud to have achieved this inside four years from start to finish and its success has provided an exceptional return on Chancerygate’s investment into the scheme and joint venture.
“This scheme demonstrates Chancerygate’s ability and skills set to develop and asset manage a significant development outside of its core activity.”
John Yeend, director at LaSalle Investment Management, commented: "We are delighted to have secured this high quality student housing property in core Zone 1 London. We expect it to deliver consistent, attractive income returns with excellent prospects for capital growth.”
Knight Frank advised LaSalle, the vendor was not represented.