Crosslane Sells Newcastle Sites for £51.5m

Crosslane has sold three student accommodation schemes located close to St James' Park to the property investors Victus.

Victus purchased the three developments in a deal worth £51.5 million, with each of the 566 bed spaces being sold for an average of £90,989.

The three schemes bought by Guernsey-based Victus European Student Accommodation Fund, include St James' House for £16.5m and St James' Point One and Two for £35m from the developers Crosslane.

The deal represents the largest within the student property sector in Newcastle, and comes a year after two similar deals saw national and overseas investors grab a foothold in the North East student market in deals worth a collective £59.1m.

Councillors have argued there are too many student developments, but the most recent transaction highlights the level of money involved in the sector, persuading developers to push for more.

Andy Whatson, director of Crosslane Student Developments said: "Crosslane is pleased to have successfully identified the sites in prime locations in Newcastle and then developed these three student accommodation schemes over three consecutive years delivering 566 beds in the city. Our fourth development in the city is expected to be complete for the 2017/18 academic year and will see Crosslane deliver a further 130 beds.

"These sales, at an attractive yield, are in line with our strategy of delivering optimal returns to investors and are testament to the high specification of the properties, fantastic amenities offered and the continuing attractions of student accommodation as an investment."