James Caan-backed property company 90 North is looking to cash in on the booming student accommodation market with the sale of an 800-bed scheme in Canterbury, Kent.
The property company has instructed Savills and Lawson & Partners to market Parham Student Village. It will seek bids in excess of £50m – a 6.17% net initial yield.
90 North manages the asset on behalf of Hawthorn Property Investments and bought it for £46m in June 2012 – its debut deal in the UK.
The village includes townhouses and flats that are currently fully occupied by students. However, 92% of the units have open planning uses, meaning they can also be leased to the private rented sector.
Around 90% of the rent roll is derived from Canterbury Christchurch University, Girne American University, CATS College Canterbury and the University for Creative Arts. The remainder is let directly to students.
90 North asset manager Edward Gibbson said: “It has been a first-class investment for us and now, with appetite for student housing being so high, we expect there to be strong interest.”
chris.berkin@estatesgazette.com
