M&G buys London student accommodation building for £79m

M&G buys London student accommodation building for £79m

M&G has bought one of the two remaining student accommodation buildings in Blackrock’s Onyx Collection.

 

The investor has acquired 273-bed asset The Project at Hoxton for a price of £79m, reflecting a net initial yield of around 4.25%.

 

Developed and run by Host and its development arm Tiger Developments, the building was completed in August this year with a GDV of £70m. With interior design by Naomi Cleaver, the building was developed with a focus on incorporating well-being and encouraging student participation.

 

The building is one of four in the collection. Two further assets - The Elements in Sheffield and The Foundry in Leeds, were sold to Far East Orchard for £71.65m last month.

 

The final asset and the largest in the collection with around 920 beds, Point Campus, is under offer to DWS for a price understood to be higher than £118m.

 

Blackrock instructed agents to sell the four buildings back in May, with a target price of around £300m. At the time it said it was open to selling the buildings individually or as a collection.

M&G declined to comment.

 

This article was published in Property Week.