Unite Students has exchanged contracts with Regional REIT to buy a development site in Leeds for £10.5m.
The 21,000 sq ft city centre site, bought on a subject-to-planning basis, will provide housing for more than 1,000 students at a development cost of about £80m. It is expected to be open for the 2020 academic year and deliver a yield on cost of about 8%.
Regional REIT initially bought the site in March 2016 as part of the Wing Portfolio, which included the adjacent 19-storey Arena Point office tower.
It will retain the 77,000 sq ft tower, calling the Unite development “complementary” to its ongoing investment and refurbishment at Arena Point.
Richard Simpson, group property director at Unite, said: “Leeds is a strong performing market with two high quality universities. Unite has maintained a 99% occupancy rate in the city over the past five years, signalling we have room to expand and there is demand for the quality, affordable student accommodation we provide.
“We are confident the site in Leeds – subject to planning approval – will be a great addition for Leeds’ growing number of students.”
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