Student living buildings sold for £14m

Agnes Jones House

Agnes Jones House and Bedford Street South student accommodation buldings in Liverpool have been sold for £14m.

They was sold by Knight Frank on behalf of GVA as receivers to a Hong Kong-based client of Estate Office Property Consultants.

The freehold 370-bedroom buildings are near The University of Liverpool and Liverpool John Moores University’s Mount Pleasant Campus.

The sale price reflects a net initial yield of circa 6.5% and a capital value per room of £38,000, considerably below replacement or rebuild costs.

The asset comprises 370 student bedrooms, arranged as two to eight bedroom non en-suite cluster flats and four one-bedroom flats.

Rents are currently set at an average of £105 per student per week for both schemes, reflecting an affordable rental profile compared to existing purpose built student accommodation and considerably below levels required for development viability.

Josh Woolley, Knight Frank Student Property, commented: “The transaction demonstrates continued demand from international investors to gain exposure to the UK student accommodation market.

“It also illustrates the demand for schemes showing affordable price points, with a demonstrable trading history and ‘value add’ asset management potential.”