Sale Shows Attractiveness Of PBSA To Investment Community Remains Strong
The property team at national law firm Irwin Mitchell has advised Infrastructure Investments Ltd on the sale of three purpose-built student accommodation blocks to a fund managed by Hermes, for over £18.57m, reflecting a 5% net initial yield.
The three buildings, blocks, J, K and L in the Rachel McMillan Student Village development, SE8, consist of 120-beds arranged in six-bedroom cluster flats which are let to Study Group on an FRI lease for a term of 30 years, expiring in September 2034.
The Rachel McMillan Student Village is located close to the University of Greenwich and Goldsmiths, University of London.
The Irwin Mitchell team was led by Property Partner Guy Sackett, together with Partner Hannah Nix, Associate Jo Bryan and Angela Pelley.
Expert Opinion“Given the impact of the current economic challenges faced by the real estate sector, it was great to get this deal across the line within the agreed timescale. This is further evidence of the enduring resilience which the PBSA sector offers.” Guy Sackett, Irwin Mitchell property partner
James Boyle, Joint Managing Director of Infrastructure Investments Ltd added: “We are grateful for Irwin Mitchell’s long-standing help and guidance with this and other assets over many years. Indeed, IM acted for us when we acquired the property way back in 2005, simplifying a complex lease structure; later advising in re-financing and then overseeing this successful sale. We look forward to working with them on our next disposal shortly.”