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Student Portfolio Up for Sale

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

A significant student accommodation portfolio has been put up for sale by Rengen Developments.

Dubbed the Inception Portfolio, the investment opportunity contains sites in Bristol, Bath and Worcester, totalling 634 beds. Student accommodation equates to 509 beds, whilst 125 units are PRS and build to rent.

The developer has appointed James Andrew International to sell the portfolio. Commenting on the sale, Andrew Soning, director at James Andrew International, said: "This is a unique opportunity to invest in quality locations in top university cities in an asset class that has proved to be extremely resilient during these difficult times."

The portfolio has a guide price of £124 million, reflecting an initial yield of 5.34%. It is expected that once fully operational, the portfolio will generate an annual income of £6.6 million.

Of the 17 properties up for sale, eight are already operational and income-producing. Five schemes are due to be completed by September this year, whilst four more assets are due to hit the market in 2022.

The assets are being managed by Rengen's operating platform, which could be utilised by the new owner if required.

The schemes are reportedly being made available individually or as a portfolio.