Third tallest building is sold to student fund
STUDENT property developer Unite Student has sold two properties in Coventry and Portsmouth for a combined Â£88.4m to the UNITE Student Accommodation Fund.
The properties in Greetham Street, Portsmouth, and Gosford Gate, Coventry, together comprise 1,122 beds and were completed this year.
Both are fully let for the 2016/17 academic year on agreements to Portsmouth University and Coventry University, generating an income yield on cost of 9.3 per cent. The disposals increase Unite’s sales for the year to more than £110m.
USAF has funded the acquisition through a new £100m, five-year facility provided by Wells Fargo. Unite currently holds a stake of 23 per cent in USAF.
Joe Lister, chief financial officer of Unite Students, said: ‘We are delighted to have sold two assets to USAF, recycling capital from our development programme providing capital to deploy into new development opportunities, while also enhancing USAF’s portfolio and returns.’
The 24-storey Greetham Street building is the third tallest building in Portsmouth. It houses 836 students.
The £42m building is 240ft tall and features a distinctive yellow ‘cube’ section at its highest point.