LaSalle acquires two student housing properties for £81m
LONDON February 23, 2015 – LaSalle Investment Management, the global real estate investment manager, has purchased two student accommodation assets on behalf of funds in separate off-market transactions totalling £81.34 million.
In 2014, LaSalle acquired 11 student accommodation assets for a combined total of over £250 million on behalf of funds. East Side Locks in Birmingham is a pre-let development funding, acquired from Alumno Developments for £43.59 million representing a yield of 5.4%. Construction has just commenced and is due for completion in August 2016, the 215,000 square feet purpose-built scheme will house 625 bedrooms spread across an 8-storey building with a 17-storey tower. The site is located in the city centre adjacent to Birmingham City University’s new Eastside campus and there is a 21-year nominations agreement in place with the University. This is the second transaction between LaSalle Investment Management and Alumno Developments, having previously acquired a student housing project in Norwich due for completion later this year.
The Hive in Bethnal Green, London, was purchased from FREP 2 (Colt) Limited Partnership, a Frogmore Real Estate Partners vehicle, for £37.75 million representing a yield of 5.8%. Built in 2008, the 75,000 square feet property is located within a mile of Queen Mary College and is a few minutes’ walk from Bethnal Green Underground Station. It is directly let to students and comprises 203 bedrooms with a common room, study room and laundry facilities on the sixth floor and a large roof garden with views towards the City of London.
John Yeend, Director, LaSalle Investment Management, said: “Eastside Locks and The Hive in Bethnal Green align with our core plus strategy. These large, high quality assets are well-located both in terms of public transport and proximity to higher education institutions, so will appeal to students looking for high quality, comfortable and convenient housing. There is still strong pent-up occupier demand for student housing and we will continue to identify assets of this type during 2015 to add to our client’s portfolios.”LaSalle was advised by Doherty Baines on The Hive and GVA on East Side Locks. The vendors were not represented. Derwent FM will manage both buildings.