UK Student Accomodation Fund (USAF) has acquired a £271m 2,100 bed accommodation portfolio from Ahli Bank.
USAF, which is 22% owned by Unite Students, will take all Ahli’s student accommodation portfolio, consisting of eight assets in seven locations.
Three of the assets are in new locations for USAF – Oxford, Durham and York – with the remainder in London, Glasgow, Leeds and Birmingham.
The purchase increases the USAF portfolio by 16% to £1.91bn covering 76 properties and 26,920 beds.
Some 70% of the new acquisitions will be direct let, with the balance let through agreements with the London School of Economics and Oxford Brookes.
The portfolio has a net initial yield of 5% with estimated earning of £2m for the balance of 2015 and £3m recurring thereafter.
Unite Students chief executive Mark Allan said: “We are delighted that USAF has been able to complete the acquisition of one of the highest quality portfolios in the market. It is highly complementary to USAF’s existing portfolio and we see real opportunities to drive additional value through the introduction of our brand and operating platform as well as specific asset management opportunities.”
