Apollo Global Management has acquired a student accommodation block in Birmingham for £32.5m from Birmingham Property Group.
The deal reflects a net initial yield of 5.75%. The Grade II listed Chamberlain Building is located across from Aston University and comprises 209 beds.
BPG acquired the building from Birmingham City Council in 2022. The site had previously been used as offices and was first occupied by students for the 2023 academic year.
James Pullan, a partner at Beachrock, which acted for BPG on the deal, said: “Liquidity is returning to the PBSA investment market. This transaction demonstrates strong institutional investment appetite for quality products. The asset is fully let today with and has very strong prelettings for September.
“Student housing is undersupplied and is outstripped by demand from UK and international students. The increased confidence from institutional investors reflects expectations of reduced interest rates. As funding volatility reduces, deal volume will increase into Q2 of 2024.”
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