LaSalle Investment Management has forward funded two direct-let student housing properties for close to £20m on behalf of pension fund clients in separate off-market deals.
The 113-bed Lace Market Studios in Nottingham was acquired for £10m, representing a yield of 6.6%, and is being developed by Omni Developments.
Upper Northgate Street in Chester (pictured) was bought for £9.3m, representing a yield of 6.4%. The 32,216 sq ft, 117-bedroom scheme is being developed by Cityheart.
Both are scheduled for completion in August 2016.
With these acquisitions, LaSalle’s client funds will control almost 5,000 purpose-built student bedrooms along with a further 2,000 rooms in houses and conversions.
John Yeend, director at LaSalle Investment Management, said: “While the sector has seen increased investor demand, transactional activity and resultant compression of yields throughout 2015, we believe that there is still value in student housing in selected markets.”
LaSalle was advised by MacLaren & Partners on Lace Market Studios and Montagu Evans on Upper Northgate Street. Both schemes will be managed by Victoria Hall.
