Apache Capital Partners has sold Brunswick House, a 251-bed student accommodation block in Cambridge, to Cambridge County Council for £38m, reflecting a net initial yield of 4.76%.
It is the third student housing sale for its Social Infrastructure platform and sets a new market level yield in the UK for a direct-let student accommodation.
Completed in July 2012, Brunswick House has 231 en suite cluster flats and 20 self-contained studio flats less than a 10-minute walk from Anglia Ruskin University’s Cambridge campus.
Ben Pile, investment director at Apache Capital Partners, said following the sale the firm would continue to look for opportunities in its core sectors of student housing, healthcare and build to rent, “focusing on prime locations and where the supply/demand dynamics remain compelling”.
Richard Jackson, co-founder and managing director of Apache Capital Partners, added: “This sale, for a record market yield for direct-let student accommodation outside London/the M25, reflects our strategic focus on investing early into alternative real estate sectors whose performance fundamentals are in part underpinned by limited high quality supply and non-discretionary spend.”
MTRE advised Apache Capital; Carter Jonas advised Cambridge County Council.
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