43 Bed Student Accommodation Investment Opportunity
- Prime freehold direct let student accommodation in central Bristol comprising 43 beds that were built in 2018.
- Berkeley House is prominently situated in Bristol City Centre directly opposite Cabot Circus Shopping Centre, and only 0.9 miles (1.4 km) from the main University of Bristol campus. It is 1.3 miles (2.1 km) from the University’s consented seven-acre Temple Quarter Enterprise campus and excellent access to University of West of England (UWE) main campus in Frenchay.
- Bristol has two established universities: The University of Bristol, which is ranked 16th by The Times Good University Guide 2019, and the University of the West of England, which is ranked 57th.
- The property was comprehensively refurbished in 2018 to provide high quality student accommodation that creates a fabulous student community and social atmosphere with its unique mix of studios and cluster flats.
- Berkeley House has been 100% let since opening and is already in excess of 80% prelet for 2019/2020, whereby the gross operating income will be £394,230 per annum.
- The current combined student population in Bristol is 52,000. The city has experienced a CAGR of nearly 3% in full-time students since 2012/2013 across both universities reflecting strong, sustained growth.
- The continuing and significant growth in student numbers will underpin future rental prospects, whilst maintaining Bristol as one of the least favourable student-to-bed ratios in the country.
- The combination of modest development pipeline and significant tightening of planning policy is set to reinforce the local imbalance between supply and demand for student beds.
- Our client is seeking offers in excess of £4,950,000 (Four Million Nine Hundred and Fifty Thousand pounds), exclusive of VAT, which equates to a Net Initial Yield of 6.26%, assuming purchaser’s costs of 2.80%, and a capital value per bed of £115,116.