Hallmark Property Group has instructed JLL to sell a set of three London student housing and aparthotel assets worth around £275m.
The 958-studio portfolio, known as The Stay Club, comprises three freehold properties based in Colindale, Camden and Willesden.
It covers 378,000 sq ft, with potential to convert aspects into co-living and aparthotel uses.
The buildings have a forecasted combined net income of £13.5m, including operating costs. Based on this figure and the portfolio value, a deal would reflect a net income yield, including operating costs, of around 4.9%. It would have a gross income yield of 5.7%, based on a gross income of £15.6m pa.
The 19-storey Colindale asset, which is the largest in the portfolio, is located at 16‑18 Charcot Road, NW9. It has 576 studios alongside facilities including a sky lounge, cinema, nightclub and gym.
The recently constructed scheme also has consent for a part conversion to an aparthotel.
The Camden property, on 34 Chalk Farm Road, NW1, was built in 2013. It has 246 studios and 10 suite rooms. There are also seven classrooms and five retail units.
The building in Willesden is situated at 5J Nicoll Road, NW10. It offers 126 studios alongside a café, roof terrace and classrooms.
It is currently being used as an aparthotel but a new planning application was submitted in March for change of use to 142 student rooms.
Custom-built residences
Hallmark, which operates The Stay Club, aims to develop a series of custom-built student residences across London.
The company is owned by Nabil Fattal, who until last year was a shareholder in and director of Consolidated Property Corporation, alongside Laurence Kirschel.
According to company literature, Hallmark is “a bespoke property investment, development and management business with headquarters on Great Marlborough Street… a 35-year track record in real estate investment and development in both central London and internationally”.
It cites a focus on “building, selling, renting and managing premium hospitality or mixed-use developments”. These include “boutique hotels, VIP clubs, bars, luxury residential developments and premium office and private student accommodation schemes”.
After an unusually sluggish first half of the year – in which only £1.2bn was transacted, according to research from CBRE, 50% down year-on-year – there has been an uptick in recent weeks.
A £232m portfolio of assets owned by Fusion Students has been placed under offer by fund manager Arlington Advisors and Singapore Press Holdings is also close to acquiring Unite Group’s £180m UK student accommodation portfolio, which comprises 13 buildings and around 3,500 affordable student beds.
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