Unite and GIC buy Aston Student Village
Unite Students and Singaporean sovereign wealth fund GIC have bought the 3,067-bed Aston Student Village in Birmingham for £227m, reflecting a 5% yield.
ASV, which is the only accommodation offered to students at Aston University, will generate a gross annual income of about $17m for LSAV, Unite and GIC’s 50:50 joint venture.
Unite Students and Singaporean sovereign wealth fund GIC have bought the 3,067-bed Aston Student Village in Birmingham for £227m, reflecting a 5% yield.
ASV, which is the only accommodation offered to students at Aston University, will generate a gross annual income of about $17m for LSAV, Unite and GIC’s 50:50 joint venture.
Unite said it expected the yield to grow to more than 6% after additional investment in the lead up to the 2017/18 academic year.
The portfolio, Unite’s first major on-campus acquisition, takes the company’s presence in Birmingham to more than 5,000 beds.
Richard Smith, chief executive of Unite Students, said: “Birmingham is one of the top cities for students and this acquisition demonstrates the value of our strong relationships with universities and also the benefit of our position as market leader.
“I look forward to strengthening our relationship with Aston University, working within the campus, helping to support their growth and providing their students with great accommodation and a service experience that will support their personal and academic achievements.”
The acquisition was funded with a 10-year facility from TH Real Estate at a 60% LTV.
LSAV was advised by Knight Frank, Gerald Eve and Deloitte.
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