St Modwen has sold its 45-year leasehold on the student accommodation at Swansea University Bay Campus to University Partnerships Programme for £87.3m.
The site totals 2,005 rooms and was built as part of a £450m development by St Modwen. It is part of a rolling programme of investments by the company on the Bay Campus, which has so far delivered more than 1m sq ft of student accommodation and academic facilities.
The gross consideration for the 45-year leasehold asset is £139.3m, representing a yield of 5.7%.
Mark Allan, chief executive of St. Modwen, said: “The sale of the latest phase of the student accommodation at the Bay Campus is an important milestone and we are proud of all that we have achieved.
“The proceeds from the sale will be used to reduce group borrowings as well as fund new, higher growth projects, both within the campus and further afield, in line with our strategy. We continue to work in close partnership with Swansea University on future developments on the site.”
St Modwen was advised by QMPF.
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