Brickworks KPL has instructed CBRE to sell the freehold for 135 luxury student bedrooms in Liverpool and Lancaster.
The portfolio spans 20 high-end HMOs and is offered to the market either as one or two lots, with a combined price of £8.5m and a gross initial yield of 9.42% and annual rent of £800,800.
As a condition of the sale, the houses will be redeveloped and optimised to maximise the rental income.
The houses are in the prime student areas of Wavertree and Kensington, Liverpool (15 HMOs), and Bulk, Lancaster (five HMOs).
Liverpool is home to three universities, with more than 50,000 students. Lancaster has two universities and a student population of around 14,000.
Max Allison-Wright, director, CBRE UK residential capital markets, said: “The HMO market has matured over the past 10 years, with high-end branded stock appearing across the UK. This has coincided with large-scale corporate investment.
“The strength of the Brickworks portfolio is that the investor has an opportunity to acquire a collection of assets in prime student areas, which is offering on average a 1-1.5% higher yield than what can be found in other top university towns and cities.”
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