Apache Capital has sold the last purpose-built student accommodation scheme in its portfolio.
The UK-focused investment manager has sold Cumberland Place (pictured) to Singaporean investor City Developments for more than £30m – a yield of 4.81%.
Completed in 2018, the student housing development is situated in the heart of Southampton and comprises 206 direct-let student beds arranged over 12 storeys. On-site amenities include a gym, screening room, sky deck and common room.
Apache sold its student accommodation assets in Cambridge and central London to Cambridge City Council and a Greystar-led joint venture respectively. The Cambridge asset, the 251-bed Brunswick House was sold for £38m – a 4.76% yield – in October 2018. The London asset, the 458-bed Paul St East, was sold in 2019 for £160m.
Now fully divested from PBSA, Apache said it would focus on delivering the remainder of its £4.1bn build-to-rent portfolio.
The firm has a prime multi-family housing joint venture with developer-operator Moda, as well as wholly owned single-family housing platform, Present Made.
John Dunkerley, chief executive and co-founder of Apache Capital, said: “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.”
MTRE advised Apache on the deal.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
