Student accommodation scheme sold in £6.3m deal
Regional REIT, the commercial property investment firm, has sold Buildings 2 and 3 The Oaks, Westwood Business Park, Coventry for £6.3m.
The 40,000 sq ft office property was acquired in May 2015 for £3.2m, and has secured planning approval for change of use from commercial office to student housing in a move that will accommodate over 1,000 students.
Stephen Inglis, chief executive of London & Scottish Property Investment Management Limited, the asset manager, said: “Having generated a high income return for the REIT since acquisition and following the successful execution of the business plan, which encompassed achieving planning approval for change of use from office to student housing, a sale was agreed resulting in a premium of 8.6% over the December 2019 valuation and delivering an IRR of 33% over the period since acquisition.
“This disposal is in-line with our ongoing strategy to identify and purchase attractively priced assets and increase valuation through our asset management initiatives, leading to a greater income stream and value enhancement, or an accretive disposal.”