Europa Fund IV and Addington Capital have bought Velocity Village in Sheffield from Lone Star for £36.8m.
Europa Capital, which manages Europa Fund IV, said the purchase of the five-building PRS block would target professionals and students near Sheffield town centre.
Matthew Allen, principal at Addington Capital, said: “This acquisition is a continuation of our strategy of acquiring large residential blocks where we see the potential to add value from a combination of individual flat sales, reposition and rental growth.
“There is a demand/supply imbalance in the Sheffield residential market with both house prices and rents expected to increase. On the commercial side, there are opportunities to lease the rest of the offices, which currently have seven separate tenants.”
Velocity Village has 444 residential units, with 73 units sold off on long leases and 371 fully let, along with 38,000 sq ft of commercial space.
Cushman & Wakefield acted for Lone Star.
The deal follows a JV by Europa and Addington in November 2014 when they bought 470 married quarter houses outside the Lakenheath United States Air Force base in Suffolk, which they refurbished.
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