M&G Investments has bought three Bournemouth student housing blocks, comprising 704 beds, for £38.1m.
The price paid to Spectrum Housing Group for Lyme Regis House, Chesil House and Okeford House reflects a circa 5% yield.
The assets are let to Campus Living Villages on a full repairing and insuring lease for 35 years, with annual rent reviews linked to inflation. The space is used by the University of Bournemouth.
Capital was provided by the £1.53bn M&G Secured Property Income Fund.
Ben Jones, manager of the M&G Secured Property Income Fund, said: “We are pleased to have acquired such high-quality student accommodation with a long-standing record of full occupancy in an undersupplied location. It meets the needs of our pension fund clients, who require long-term income streams linked to inflation.”
The fund was advised by M&G Real Estate, which was advised by Montagu Evans; the vendor was not represented.
joanna.bourke@estatesgazette.com
