LaSalle Investment Management has acquired two student accommodation blocks in Newcastle upon Tyne for £23.1m.
The purchase from Aviva Investors represents a yield of 5.65%.
Estates Gazette revealed in November that Knight Frank had been appointed by the Aviva Linked Property Fund to sell its 456-bed portfolio in Newcastle City Centre.
The firm had been seeking offers in excess of £22.7m.
The two properties, Camden Court and Magnet Court, are let to Unite for 19-and-a-half years with uncapped annual RPI rental uplifts.
Chris Fry, LaSalle fund manager said: “This acquisition provides our client with an inflation-proof income stream derived from prime property in a city where students are always keen to study and live.”
GVA acted for LaSalle; Knight Frank represented Aviva.
Nick.whitten@estatesgazette.com
