FreshStart Living has acquired 164-bed student residence development Greenock Hall in Scotland, from James Watt College.
The Salford-based developer said the 164 rooms will each be sold to investors for around £27,500, meaning the minimum development value is likely to be in excess of £4.5m.
The company confirmed the purchase value was a “lover seven-figure” number.
Rooms are set to achieve weekly student rents of £85 with a gross yield of 10%, said Stuart Cook, acquisitions manager at FreshStart.
Cook added: “Student property is a very attractive asset class to individual investors. Student rentals have remained robust with a recorded yearly growth of 5% over the past six years, and FreshStart structures it in a such a way to make it a ‘hands-off’ investment vehicle.”
James Pullan, head of student property at Knight Frank, said he was seeing more smaller developers buying student blocks at good prices and then refurbishing them to sell on as individual student flats.
“These acquisitions being broken down into packages are a way of smaller landlords investing in the student housing sector,” Pullan added.
The student flats will be refurbished and ready for occupation in September 2012.
Knight Frank’s Glasgow team advised James Watt College.
joanna.bourke@estatesgazette.com
