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L&G Acquires Student Accommodation in Exeter

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Five blocks of student accommodation and a 36,000 sq ft teaching facility at the University of Exeter have been acquired by Legal & General for a total of £76m.

The student accommodation consists of 517 bedrooms, including 160 student rooms, 355 en-suite cluster rooms and two staff rooms. The accommodation is split across five separate blocks and are let to INTO University of Exeter on a 35-year lease.

The blocks of student accommodation were acquired by Legal & General's UK Property Fund for £49.6m, representing an initial yield of 5.78 per cent.

Meanwhile, Legal & Generals LPI (Limited Price Inflation) Income Property Fund snapped up the INTO Academic Facility at Exeter University for a total of £26.4m.

The teaching facility is situated in the centre of the Exeter University Campus and has a 30-year lease in place with the University.

Commenting on the acquisitions, Matt Jarvis, fund manager of the Legal & General UK Property Fund, said: "The quality of accommodation and teaching facilities represents a large factor for students when deciding where they want to go to University.

"We believe that quality facilities help to provide a quality education and we will continue to target university like Exeter which have modern purpose purpose-built living and teaching accommodation."