Empiric Student Property has exchanged contracts to purchase on practical completion the 125-year leasehold on a site on James Street West, Bath, for £7.7m.
Iesis Group is building the block, which is due to complete in September 2016.
The three-storey block will retain a listed facade and include 78 en-suite bedrooms in 15 flats.
Bath and North East Somerset council retains the freehold.
Empiric chief executive Paul Hadaway said: “This is the second commitment in Bath for the company, following the forward commitment on James House announced recently. Once both developments complete in September 2016, Empiric will own a total of 247 beds in Bath. With a growing student population of some 20,000, which includes the highest proportion of international students outside London, a shortage of purpose-built student accommodation and restricted planning for new developments, these properties represent a great opportunity for the group. This acquisition is in line with Empiric’s investment criteria and returns profile.”
