Canterbury’s Palamon Court PBSA asset sells for £110m

Palamon Court, a rare Canterbury PBSA asset exchanges hands for £110m and is the largest single regional asset to trade in five years.

Palamon Court student development sold by Knight Frank on behalf of Canbury Group Ltd | PBSA News
Palamon Court student development sold by Knight Frank on behalf of Canbury Group Ltd.

Palamon Court, a rare purpose-build student accommodation (PBSA) asset in Canterbury has sold for £110m. Acting on behalf of Canbury Group Ltd, the Student Property team of global property consultancy Knight Frank sold the asset, which represents the largest single regional PBSA asset to trade since 2017. The transaction reflects a net initial yield of 5.3%.

Palamon Court is a best-in-class, high-specification PBSA asset comprising 915 bedrooms – a mix of 370 studios, 80 twodios and 465 en-suite rooms. Units are divided between three blocks, which were delivered in three phases and completed in academic years 2017/18, 2021/22 and 2022/23.

Palamon Court scheme in Canterbury | PBSA News

“Canterbury is one of the most underrepresented markets in the country for PBSA. The city has a yearly influx of almost 32,000 students, yet 65% are unable to access university or private-sector accommodation. With PBSA in Canterbury in such high demand, Palamon Court offered a prime investment opportunity of scale and interest was extremely high.”

Rupert Strutt, a Partner in the Student Property team at Knight Frank
Communal area at Palamon Court | PBSA News
Communal area at Palamon Court.

The Palamon Court scheme provides students with high-quality accommodation in the heart of Canterbury. There is a generous provision of amenity space within the property; each block includes an onsite gym, common area, study space, cinema room and private dining room.

Palamon Court is ideally located 0.5 miles from Canterbury Christchurch University, the University for the Creative Arts and the Kings Mile shopping district. The University of Kent is also only 1.3 miles away. Directly adjacent to Palamon Court is Augustine House – Canterbury Christchurch’s library and student services hub.