Beachrock has completed on the disposal of a purpose-built student accommodation (PBSA) scheme in Greenwich to a fund managed by Federated Hermes. The transaction completed at £18.568m, reflecting £155,000 per bedroom and 5.0% NIY.
The PBSA development is situated adjacent to the McMillan Student Village in Greenwich, London. Currently home to around 120 students, the scheme contains en-suite cluster flat bedrooms. The student accommodation scheme is leased to Study Group who paid an RPI indexed rent of close to £1m.
“Property funds are seeking the safety of PBSA, a residential asset class underpinned by Higher Education. At 5% NIY this transaction shows liquidity for a prime, well let asset with an excellent rental growth story.
“his transaction will give confidence to investors in student accommodation. Beachrock anticipate closing on over £250m of transactions in Q2.”Sam Ball, Partner, Beachrock