28 Sep 2011 07:00
28 September 2011
Development Securities PLC acquires student accommodation
Development Securities PLC, the leading property development and investment company, has acquired its first building in the student housing sector through Accrue Manchester LP, its 50:50 JV with Accrue Student Housing, a subsidiary of Accrue Capital, the real estate private equity house.
Ladybarn House has been purchased on a long lease from Manchester University for a figure in the region of £7m to yield 6.25%. It is an established hall of residence in the heart of the Fallowfield Campus, the main residential campus of the University of Manchester. Accrue Manchester will undertake a rolling refurbishment to upgrade kitchens and bathrooms, having already reconfigured the accommodation. Upon completion of these additional works next year, the yield is anticipated to increase to an amount in excess of 8%. Ladybarn House was fully let by Accrue Manchester between exchange and completion of the purchase contract.
This deal is part of Development Securities PLC's strategy to explore additional asset classes with interesting demand/supply ratios that hold opportunities for value creation. Senior debt of £4.55m for the transaction was provided by the Cooperative Bank.
For further information, please contact:
Matthew Weiner 020 7828 4777
Development Securities PLC
Mallika Basu/Lucy Grimble 020 7630 1411
The Communication Group