Regents Godiva has confirmed the sale of Godiva Place, a major student scheme in Coventry’s city centre, for £74.5m.
As first tipped in Estates Gazette, the deal sees Aviva Investors acquiring the freehold to the forward funded student accommodation building and the price paid equates to £96,869 per bed.
The 770-bed scheme will be tenanted by Coventry University on a 30 year lease, at a rent of £3.4m pa. The university has a buy-back option at £1 at expiry.
Aviva Investors’ Julian Taylor said: “Income strip investments such as this are ideally suited for investors in our long income funds.”
Shaun Roy, head of specialist investment at Knight Frank, which advised Regents Godiva, said this this type of product “works well for the annuity funds with long- term liabilities and with the buyback option increasing in value every year for the University.”
He said: “It is a win-win for all parties involved.”
The building is due to be completed in September 2018.
Knight Frank advised Regents Godiva; Colliers International advised Aviva Investors.
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