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AZ Real Estate Acquire Birmingham Accommodation

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

AZ Real Estate has snapped up a 136-bed student accommodation scheme in Birmingham on behalf of a private Russian buyer.

The London and Moscow-based real estate consultancy purchased City Edge in Birmingham on a leasehold basis for £10.6m.

The purpose-built student accommodation is situated close to the Birmingham City University South Campus, which itself is subject to a £41m expansion project.

The former office block was converted to accommodation in 2016 and is fully tenanted. It includes a ground-floor retail unit occupied by Guitar Guitar Limited with a combined income for the building delivering a net initial yield of 7.5%.

City Edge has a lease of 111 years and is currently being managed by student specialists Homes for Students.

According to founder and CEO of AZ Real Estate, Alisa Zotimova, the purchase represents a significant acquisition with a strong-long term yield.

She added: "Birmingham is the UK's second city, with an attractive 'knowledge economy' that will continue to prosper, giving us confidence in this investment for the future."

"The acquisition is also indicative of an emerging shift in investment trends, whereby clients are willing to forgo traditional trophy assets in favour of those with stronger long-term returns and projectable cash flow, many of which are now outside of the capital."