New York-based Avenue Capital Group has made another UK student housing purchase from the assets of collapsed Opal Property Group.
The company is believed to have paid in the region of £25m – a circa 6.75% yield – for the 448-bed student accommodation development in Nottingham known as Opal 3.
Opal 3 was bought to the market via Savills on the instruction of RPS Capital Partners. It generated rental income of £2.4m for 2012-13 academic year.
It marks Avenue’s s second Opal-related purchase, after buying 1,800 UK beds from administrator KPMG for close to £100m, as revealed by Estates Gazette in July last year .
Stuart Wall’s Opal, which was one of the UK’s largest student accommodation providers, collapsed after failing to agree a refinancing deal for nearly £900m of debt with several lenders ahead of a 1 March 2013 deadline.
All parties declined to comment.
joanna.bourke@estatesgazette.com
