Legal & General Investment Management Real Assets (L&G) has recently acquired Queens Road Student Village in Winchester, increasing its investment portfolio to more than €1.1m (£870m).
The property is let to the University of Winchester for 40 years at a rent of €1.5m (£1.3m) per annum, and was secured for approximately €36m (£31m). The Queens Road Student Village is located within the University of Winchester campus in Winchester city centre. The campus is situated on the west side of the city centre, within a ten minute walk of Winchester station and the central shopping area. The property was constructed in 2010 and offers 399 student bedrooms (375 en-suite cluster rooms, 23 twin flats and one accessible room) arranged over seven self-contained buildings.
Launched in 2010, following this latest acquisition, the LPI Income Property Fund now has €1.1m (£870m) of assets under management.
Derek Gilby, Senior Fund Manager at L&G, said: “The purchase of Queens Road Student Village in Winchester is in line with our investment strategy for the Fund, offering a secure long term income stream from an investment grade university. We are currently in a low interest rate environment and with annual rental uplifts linked to inflation we can ensure stable and resilient returns over the long term.”
Professor Neil Marriot, Deputy Vice-Chancellor at the University of Winchester, said: “The University of Winchester is pleased to partner L&G to be able to offer our students with affordable, high-quality, on-campus accommodation on a long term sustainable basis.”
Hanover Green and Savills advised L&G and Doherty Baines acted for the vendor.