Berkeley First and Imperial College London have sold their student accommodation joint venture for £116m to Legal & General.
Under the deal, Legal & General will let Battersea-based Griffon Studios to Imperial on a 45-year annual RPI-linked lease. From 2056, ownership will revert to the university.
The first phase of 452 postgraduate student flats will be ready for October, and the remaining 114 apartments will be delivered by October 2012.
Apartments will feature double beds and en-suite bathrooms, while the complex includes a gym, laundry and landscaped gardens.
Derek Gilby, senior fund manager at Legal and General Property, said: “In line with our acquisitions strategy, this purchase represents a rare opportunity to acquire a 45-year index-linked income strip let to a very strong covenant.”
CB Richard Ellis advised on the transaction.
joanna.bourke@estatesgazette.com
