Wed 04 January 2017
A Birmingham student block once the home of to Entertainment industry has been sold for £13.3 million.
Kensington House, in Suffolk Street Queensway, has been bought by London-based investor Investra from Birmingham Properties Group.
The building currently houses 111 student bedrooms following a major refit while the former Medusa unit on the ground floor is being marketed for restaurant or retail uses.
Nick Hornby, development director at Investra, said: "This is our fourth student purchase and is in line with our strategy of targeting strong micro markets.
"Kensington House provides an exciting opportunity.
"While already established in the market, there is still a number of initiatives that we will look to undertake to capitalise on the strong Birmingham market."
Rupert Strutt, from property consultancy Knight Frank which acted for the seller, added: "In a complex market, this deal demonstrates the strength of investment appetite from investors from across the globe for quality student accommodation in Birmingham.
"Well-located, good-performing schemes such as Kensington House are in clear demand as they provide healthy rental and capital growth prospects."
John Tebbutt, managing director of Birmingham Properties Group, said: "There was competitive bidding for Kensington House which we have owned since 2011, showing that the group's foresight to purchase an underperforming asset in the recession was prudent.
"We always felt the reorientation and redevelopment of New Street, together with the improving Mailbox story, made this location very attractive."