Rushbond sells its student development for £7.2m

STUDENT development Algernon Firth has been sold for £7.2m in Leeds’ first major property transaction of the year.

Empiric Student Property has bought the building, next to Leeds General Infirmary, from Leeds property company Rushbond completed transforming the redundant Art Deco Grade II-listed building on Great George Street for 111 students in autumn 2013.

The acquisition is Empiric’s first investment in Leeds and the purchase price reflects a net initial yield of 6.5%.

Richard Baker of Rushbond said: “When we initially embarked on this development it was our intention to create a new generation of student accommodation that exceeded everything else in the market. We wanted to offer students genuine homes that are on the doorstep of Leeds’ universities and all the many attractive amenities the city centre offers.
 
“These aspirations, combined with Algernon Firth’s superb occupancy rates and convenient location in one of the UK’s leading Russell Group university cities, made it particularly attractive to potential investors and we’re delighted, with the assistance of DTZ’s Manchester based student investment team, to have completed the sale to Empiric.

“The fund has a fantastic track-record in the premium student property market and this deal is testament to the overall quality of the scheme as well as the strength of both the investment and student markets in Leeds.”