Unite Students Accommodation Fund has acquired a £34m asset under development in Durham that will provide a home for 363 students.
The development is expected to deliver a yield on cost of 6.4% in its first year of operation following opening in September 2018. Based on current valuations, the asset will be valued at a yield of 5.5%, resulting in a profit on cost of £5m from Unite’s £1.1m share.
Richard Simpson, USAF group property director, said: “This latest acquisition further extends our high-quality development programme in a strong regional location where there is strong demand for purpose built student accommodation. Our strategy remains focused on high quality Universities like Durham, where we see sustainable growth.”
The acquisition will be funded with USAF’s share of proceeds from recent disposals.
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