Mace has put its 264-bedroom West Way Square student development in Oxford up for sale.
It has instructed Knight Frank to market the property with a £56m price tag.
The scheme includes six commercial units, which produce a net income of £419,500 pa and is let to tenants including Tesco Express and Iceland.
Mike O’Sullivan, a partner in the student property team at Knight Frank, said: “This is an excellent opportunity to acquire a prime purpose-built student accommodation in one of the most desirable global cities for university education.
“Oxford is currently experiencing restricted planning policies which will affect the future pipeline of new PBSA development in the city with only 339 private PBSA beds in the pipeline. As a result, a fully operational and income producing asset such as West Way Square will likely generate a substantial pool of interested buyers.”
The UK’s PBSA sector, bolstered by the quality of its higher education system, has consistently displayed resilience. Despite the maturation and expansion of the UK’s PBSA market, a substantial undersupply issue persists. According to Knight Frank, full-time students outnumber available bed spaces by a 3:1 ratio in several key regions, while the number of full-time undergraduate students across the UK is expected to increase by 16% by the end of the decade.
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