Newly-built student property in Birmingham sold for £8.9m

LONDON investor Empiric Student Property (ESP) has bought a student apartment block in Selly Oak, Birmingham, for around £8.9m.

It has acquired the purpose-built Edge Apartments, following practical completion of construction, from Prime Student Housing Birmingham, a joint venture vehicle of London Cornwall Property Partners (a company controlled by Paul Hadaway and Timothy Attlee, executive directors of ESP) and Revcap Advisors, which developed the property. 
 
The property comprises 77 beds arranged in both individual studios and two bedroom apartment configurations. The property includes a gym, cinema room, games rooms and work rooms for the use of the student residents.

The property also benefits from rental income from a Sainsbury’s store (which is let on a 15 year lease) and a coffee shop on the ground floor.
 
The student accommodation rooms in the property are let for 51 weeks of the year and are 100% let for the 2014/15 academic year.  The property is opposite the main University of Birmingham campus in Selly Oak and is next to Brook Studios, the student accommodation property acquired by the company on July 23. 
 
Paul Hadaway, chief executive of Empiric Student Property, said: “We are delighted with the progress that we have made to date in establishing a portfolio of high quality student accommodation assets, which are expected to provide returns in line with our investment policy parameters. 

“A number of additional properties are currently under negotiation and we look forward to announcing such additional acquisitions in due course.”

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