Ahli United Bank and its operator Mansion Group have bought Ernest Place, a 362-bed student accommodation block in Durham, from Studious Investment Management.
The circa £30m purchase was financed by a five-year £18.4m investment facility from Bank of Scotland’s commercial real estate team.
Ernest Place was built in 2017 near the Gilesgate area of the city, which has a significant population of Durham University students.
The property comprises 174 en suite cluster rooms in four- and five-bed apartments alongside 188 studios. It also includes lounges, a cinema room, gym, sauna, private dining rooms and a rooftop terrace.
Maz Osman, fund manager at Ahli United Bank, said: “This is an important acquisition for the bank’s private banking clients, which expands our global portfolio of quality real estate investments.
“This asset offers class leading amenity in the Durham student accommodation market. The opportunity has proved extremely popular with our clients and was oversubscribed.”
Steven Edwards, relationship director at Bank of Scotland commercial real estate, added: “Durham has an undersupply of quality accommodation relative to the size of its student population, which will see a material increase in line with the university’s published expansion plan.
“Ernest Place is a great product at a competitive price point and Ahli United has seized on a fantastic opportunity in the North East’s investment market.”
DAC Beachcroft, Valore Real Estate and Rapleys advised Ahli United Bank and Mansion Group.
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