The National Bank of Kuwait SAK has bought Cambridge House, a 48-bed purpose-built student accommodation property in Manchester, for £3.8m – a net initial yield of 5.9%.
The property has been sold by the St Regent Fund, which forms part of the Coral Student Portfolio managed by Crosslane Fund Managers.
The National Bank of Kuwait bought the property through its wholly owned subsidiary Cambridge Street Holdings.
This is the first of three student accommodation assets totalling 277 beds that Crosslane is selling on behalf of the St Regent Fund. The other two assets are Meadow Court, Edinburgh, and Sauchiehall Street, Glasgow. These assets have been managed and let by Prime Student Living, the student accommodation lettings and operational management arm of Crosslane, since 2008, with all three properties 100% let every year.
Prime Student Living has been contracted by National Bank of Kuwait SAK to continue to manage Cambridge House, and the property was already fully let for the 2016/17 academic year in July 2016.
Bassam Khazen of National Bank of Kuwait said: “This demonstrates our appetite for investments in the purpose-built student housing sector, which offers attractive, sustainable and growing income with the potential for capital appreciation.”
JLL acted for Crosslane on Cambridge House. Cushman & Wakefield is representing Crosslane for the sale of the Glasgow and Edinburgh properties.
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