Student housing developer Unite has sold 87-bedroom Newington Court, N16, to the London Hostels Association, in order to focus on larger schemes.
LHA is believed to have paid £12m for the building at 173 Green Lanes, reflecting a 6.5% net initial yield. Newington Court produces rental income of £821,207 per year.
The building was originally part of a three-property London portfolio Unite put on the market in October for £44.3m. However, investor interest was not strong enough for the package, and each asset is now being sold individually.
Unite put £70m of non-core properties up for sale as part of its strategy to sell £150m of assets by the end of 2012.
Lee McLean, asset management director at Unite, said: “The sale of Newington Court marks good progress on our disposal programme of smaller, non-core assets, and enables us to continue our ongoing development pipeline focused on London and a small number of other selected locations.”
Savills advised the vendor; HNG represented the purchaser.
joanna.bourke@estatesgazette.com
