LONDON, 13 December, 2016
Birmingham Properties Group has sold a student housing scheme to Investra for £13.3m, reflecting a net initial
yield of 6.6%.
Kensington House is a direct-let scheme in Birmingham City centre with an accompanying car park and commercial space.
The 111-bed development, which was recently refurbished, offers an estimated gross income of more than £1m
for 2016/17 and is close to both Aston and Birmingham City Universities.
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.”
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. Whilst already established in the market there are still a number of initiatives that we will look to undertake to capitalise on the strong Birmingham market.”
Birmingham Properties Group is also seeking offers for Bromsgrove House, a £14m student housing development. The 140-bed purpose scheme is currently under construction and is due to be completed in July 2017.
Knight Frank acted on the sale of Kensington House and is marketing Bromsgrove House.