Braemar student fund buys flats
BRAEMAR, the Hale-based property investment group, has bought a block of student flats in Bristol for £6.57m, through its student property fund.
The AIM-listed company said it bought Hotwells House, which has 32 flats, at a 9% discount to the market value for its Guernsey listed Student Accommodation open ended investment company. The level of debt on the acquisition is £4.3m.
The flats, which hold 142 beds, are situated between the main University of West of England campus and the city centre.
They carry a full occupancy agreement underwritten for five years, as well as an annual gross yield of 9%, with a minimum rent increase of 4% a year.
The directors said they have also identified other acquisition opportunities across the UK and anticipate making further completions in the next few months.
Marc Duschenes, chief executive of Braemar Group, said: “Our fund performance, up 22% since inception, has been driven by our strong buying position, but with increasing numbers of students seeking modern quality accommodation fuelling rental inflation, there is no reason why rents should not continue to rise in the future.”
