Unite Students has bought a 270-bed development site in Nottingham city centre.
The Lower Parliament Street site, which already has planning consent, will open for the 2024/25 academic year. Development costs are estimated to be £34m.
Unite said that the direct-let development is expected to deliver a yield on cost of 7%.
The student accommodation leader already owns and manages around 1,900 student accommodation beds in Nottingham. A further 970 beds will be added from the new site and its 700-bed consented development at Derby Road (pictured), which is due to be completed in 2023.
Unite said the new scheme would allow it to create “a more tailored offer” for second and third-year and postgraduate students.
Nick Hayes, Unite’s group property director, said: “Through this opportunity we are able to cater for the increased number of students wanting to attend the University of Nottingham and Nottingham Trent University, both located in a growing regional city.”
The new site increases Unite’s secured pipeline to over £800m, its highest ever level.
“We continue to see opportunities to add further schemes in London and prime regional markets at attractive returns,” Hayes added.
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