Herne Hill Students is selling its purpose-built student accommodation block Academic House, SE24, for £12.2m – a 4.8% yield.
The 69-bedroom freehold asset, located next to Herne Hill station, was built in 2014.
The property is configured over four floors, comprising 56 studios and 13 en-suite cluster bedrooms. It has full occupancy for September 2017 with a total anticipated 2017/18 gross student income of £755,631.
The ground-floor commercial unit is leased to Tesco for £70,000 per annum with 17 years unexpired on its lease.
Rupert Strutt, Knight Frank Student Property, said: “Academic House provides a rare opportunity to acquire a solus student property asset in London, a city with more than 269,000 full-time students and a critical under-supply of purpose-built stock.
“The trend of climbing development costs and an increasingly challenging planning environment are squeezing supply. Academic House is fully let for the 2017/18 year and its situation next to a key Zone 2 travel hub makes it an attractive investment prospect.”
Knight Frank is advising Herne Hill Students.
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