UK-based real estate company Apache Capital has sold Cumberland Place, a student housing asset in Southampton, UK, to Singapore-based real estate company City Developments Limited for over £30 million, representing an exit yield of 4.81 percent and exceeding the target sale price.
Completed in 2018, the high quality student housing development is situated in the heart of the city, being a six-minute walk to the north west of Southampton Solent University’s East Park Terrace campus and a 16-minute journey by public transport to the University of Southampton’s Highfield campus.
The property, which is fully let and has achieved 100 percent occupancy year-on-year, comprises 206 direct-let student beds arranged over 12 storeys. On-site amenities include a gym, screening room, 10th floor sky deck and common room with panoramic views of the city across to the Isle of Wight.
John Dunkerley, Co-Founder and CEO of Apache Capital, said: “Today’s announcement gives City Developments Limited a high quality, high performing asset that is underpinned by a strong location, good design and premium branding.
“The success of our purpose-built student accommodation assets, reflected in the sale price achieved in all three disposals, is a vindication of our strategy to pursue a highly amenitised, service-driven model in the UK’s emerging build-to-rent sector.”
Jamie Snary, Executive Director, added: “Cumberland Place has consistently performed strongly since its completion in 2018 with full occupancy being achieved year on year as well as consistently strong rental growth.
“As with all our assets, whether in our multi and single-family build-to-rent pipelines or our previous student accommodation investments, Cumberland Place was designed from the outset with the end user, the resident, in mind.
“This strategy has once again borne success with year on year re-booker rates exceeding market norms and consistently positive resident feedback and this is reflected in the sale price that has been achieved.”