Aberdeen Investors has bought Fulham Palace Studios, a student housing development in Hammersmith, W6, from Sunley Holdings.
The development sold for £22.58m, reflecting a blended net initial yield of 4.42%.
Fulham Palace Studios comprises 74 beds and 9,131 sq ft of fully-let retail space. The student accommodation element of the scheme is let to London Nest on a lease which expires in 2021. The ground-floor commercial space is let to Tesco, Pret, Winkworth and Café Nero.
Its total projected income for the 2019/20 academic year is circa £1.17m.
Merelina Sykes, a partner in Knight Frank’s student property team, which advised Sunley on the deal, said: “London remains a key investment target for most student accommodation buyers, further enhanced by the London Plan and the need to develop affordable rents in schemes moving forwards.”
Recent findings from Knight Frank show that more than 560,000 students applied to start a full-time undergraduate course at UK universities for the 2019/20 academic year, according to the latest applications data from Ucas.
This was nearly 2,500 more applications than at the same point last year and the first year-on-year increase in applications in three years.
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