LaSalle Picks Up London Student Housing for $70M
- Feb 14, 2014
Leading global real estate investment manager LaSalle Investment Management has bought a Victoria Hall student housing property located in Wembley, London, paying $68.9 million (£41.45 million) – a net initial yield of 6.57 percent. The buyer was advised by Jones Lang LaSalle on the transaction, while Savills advised seller Westbrook Partners.
Victoria Hall Wembley features 435 bedrooms, of which 242 are cluster bedrooms, 172 are studios and 21 are penthouse studios. Units come fully furnished, complete with a fully equipped kitchen, including cooking utensils and feature broadband Wi-Fi, landlines and satellite TV. Further features include controlled access, CCTV, on-site management and onsite staff. The 20-story purpose-built student housing complex features a total of 83,928 square feet of space.
One of the main attractions of Victoria Hall Wembley is its location. Adjacent to Wembley Park Underground Station, the property provides great connectivity to London’s 41 universities and colleges as well as all the amenities students require. The nearby Wembley designer outlet mall, opened in late 2013, provides tenants with a quick and convenient shopping destination.
Rents start at $1,105 per month and go up to $1,564 per month. Assured Shorthold Tenancies handles leasing for the property and has afforded a three-year rental guarantee to LaSalle investment Management. Assured provides direct leases to student tenants.
The Victoria Hall student housing brand has locations in 10 U.K. cities as well one in Germany, Ireland and Spain.
According to John Yeend, Director at LaSalle Investment Management, the undersupplied U.K. student housing market is becoming an increasingly hot commodity for institutional and private investors alike. The sector’s ability to drive rents and yield high incomes results in enticing real returns for investors.
“The Wembley property represents core London, underpinned by residential, with an attractive yield,” said Yeend. “The acquisition continues LaSalle’s investment activity in the student housing sector.”
London is the U.K.’s most underserved student housing market.