Empiric Student Property has bought three student blocks in London and Exeter with a combined total of 213 beds.
CBRE Global Investors sold the blocks for £21.5m in total, excluding acquisition costs.
Isca Lofts on Longbrook Street in Exeter, for which Empiric paid £4.7m, is a 1920s converted warehouse in Exeter city centre providing 71 beds. It is managed by Universal Student Living.
Empiric paid £6.2m for Grosvenor Hall in Twickenham near London. The 72-bed block is close to St Mary’s University, which underwrites the income on nearly half the beds.
Francis Gardner Hall in West Hampstead, London, has 70 beds and was bought for £10.6m. The building was built around 1890 and was converted and refurbished in 2004-05. The property is currently let to young professionals on a six-month assured shorthold tenancy basis but will become student accommodation in 2017.
Paul Hadaway, chief executive of Empiric Student Property, said: “Empiric has a limited presence in London in relation to the size of the full-time student population in the city, as we believe that assets in the regions represent better investment value.
“However, as these acquisitions demonstrate, we will continue to acquire properties in London that meet our investment criteria and that are expected to provide good returns. This acquisition is in line with Empiric’s investment criteria and returns profile.”
Allsop acted for CBRE Global Investors, Lawson & Partners acted for Empiric.
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