Crosslane Student Developments, part of the Crosslane Property Group (“Crosslane”), today announces that it has successfully sold its 134-bed purpose-built student accommodation development scheme Albert Place, in Newcastle. The buyer is a Middle Eastern investment group which is a client of Kout Advisory (“Kout”). Kout offers specialist real estate advisory and management services to international capital sources. The purchase price was £10.4m.
As part of the deal with Kout, Prime Student Living has secured a contract to continue to operate Albert Place until at least August 2020.
Albert Place is a purpose-built student accommodation scheme successfully completed by Crosslane in September 2017 ahead of the start of the 2017/2018 academic year. The property is the fourth development that Crosslane delivered in Newcastle over the last four years, creating a total of 700 beds to help ease the supply/demand fundamentals which continue to persist for purpose-built student accommodation in this fantastic student city.
Prime Student Living, the student accommodation lettings and operational management arm of Crosslane, successfully ensured Albert Place achieved a high level of occupancy for its initial year of operation. Bookings are in line with expectations to achieve full occupancy ahead of the start of the 2018/2019 academic year, reflecting the demand for high specification student accommodation in the city, which has approximately 51,000 students across Newcastle University and Northumbria University.
The property is very well positioned, immediately adjacent to the University of Northumbria City Campus East and within a short walking distance to the main campus of the University of Northumbria. Newcastle University is also nearby, as well as metro and bus links, shops, restaurants and bars. The property comprises 133 beds in cluster flats and 1 self-contained studio apartment and boasts high-quality communal facilities, including a common room, onsite gym and landscaped private outdoor courtyard.
Crosslane was advised by Brabners and PwC, with Kout being advised by Charles Russell Speechlys, JLL, Dacre Property and Smith & Williamson.
Michael Moran, Development Manager, Crosslane Student Developments, said:
“Crosslane is pleased to have completed the sale of Albert Place in Newcastle, successfully generating returns to its investors by increasing the property’s asset value since acquiring the freehold site in August 2016: obtaining planning consent in April of that year and completing construction on time and within budget ahead of the start of the 2017/18 academic year.
Albert Place is a high-quality, landmark development and one of four student accommodation properties that Crosslane has developed in Newcastle since 2014, creating a total of 700 beds in the city.
Crosslane remains active in strengthening its identified pipeline of potential investment opportunities to further grow our successful student accommodation business in key university cities and towns across the UK.”
Omar Alzumai, Founder and Managing Director of Kout Advisory, said:
“Albert Place is well-located in the centre of Newcastle, newly completed to a high standard and provides a purpose-built student facility. It has been acquired by our clients to provide a strong income profile for the medium to long-term as part of their entrance into the UK student housing market.”
Christopher Lawton-Smith, Head of European Real Estate at Kout Advisory, said:
“Our clients are focussed on UK ‘Russell Group’ towns and buildings where the number of units is smaller than those required by the larger institutional investors. Arguably, Newcastle has a good level of student accommodation, but this property appealed due to its close proximity to Northumbria University and is operated and managed by a market leader.”