A German property investment company has agreed a £35.6 million deal to buy a 462 bed student scheme in Leicester.
Deutsche Finance International (DFI) has exchanged contacts with developer Watkin Jones on The Tannery, a new scheme near the River Soar in Bath Lane, in the city’s Waterside regeneration area.
The money will be paid on completion of the scheme ahead of the autumn academic term, and the accommodation will be run by Watkin Jones’ Fresh property management company.
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Fresh looks after more than 20,000 student beds and build-to-rent apartments on behalf of institutional clients.
Since 1999, Watkin Jones has built 43,000 student beds across 130 sites, while this is DFI’s second student acquisition in the 海角视频 and its first with Watkin Jones.
The Waterside scheme is close to De Montfort University and has 415 en-suite rooms and 47 studios, along with a cinema room, games room, fitness studio, lounges and study areas.
It is going up next to the 600 bed Merlin Heights student scheme, which was developed by Watkin Jones in 2016.
It also neighbours another Watkin Jones build-to-rent scheme currently in development.
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The wider Waterside area – which was semi-derelict for years – stretches across the western side of the city. It is undergoing £250-million plus of investment, including new hotels, PRS and student schemes, offices, shared workspaces and the recent transformation of the semi-derelict Leicester Central Station.
Watkin Jones chief investment officer Alex Pease said: “It’s brilliant to secure institutional investment for this superb scheme that only adds to the growing desirability of Leicester’s dynamic riverside area.
“What was a brownfield site in need of regeneration will shortly offer hundreds of residents a really attractive place to live with easy access to two respected universities, as well as the shops, bars and cafés of the city centre.
“The success of this second PBSA (purpose built student accommodation) scheme alongside our upcoming built-to-rent offer in Leicester showcases our ability to meet the very strong institutional and resident demand for 海角视频 residential for rent.
“The country’s growing market of renters increasingly value great homes with in-built lifestyle and welfare provision, while institutions are seeking high-quality assets that offer strong long-term returns.
“Working with DFI for the first time to complete this sale has been a real positive and the team look forward to continuing our relationship into the future.
“My thanks go to everyone involved in making the deal happen.”
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Paul Nearchou, investment director at DFI, said: “This off market transaction represented a compelling opportunity for us to build on our 海角视频 student accommodation exposure and take advantage of the current market dislocation with the acquisition of one of the few newly constructed PBSA assets in Leicester.
“Watkin Jones is one of 海角视频’s leading developers and we are confident that they will deliver a high quality, modern product ready for the 2021/22 academic year. The outlook for the 海角视频 student sector remains strong, with supportive demographics and growing domestic and international demand.”