Rockspring Property Investment Managers has announced the acquisition of Dashwood Studios, a significant student accommodation scheme recently completed by Quintain Estates and Development plc, on behalf of a pension fund client.
Rockspring acquired this asset in conjunction with its partner Victoria Hall. The total consideration for the transaction was £34 million (approx. 39 million).
Dashwood Studios is located in Elephant & Castle, benefiting from its strong transport links and proximity to central London, and attracts residents from several London universities in the surrounding area. It contains 232 high quality studio rooms, multiple communal living spaces and retail units on the ground floor. The student accommodation is 100% let for the current academic year and the retail units are currently under offer to strong local covenants.
This is the second acquisition of a student accommodation asset undertaken for its clients by Rockspring, following its acquisition of 123 Fountainbridge, Edinburgh for £14.2 million on behalf of the Rockspring UK Value Fund in October 2010. Rockspring continues to view the counter-cyclical nature of higher education as a relatively stable and secure market with valuations underpinned by a fundamental supply/demand imbalance.
Robert Gilchrist, Chief Executive of Rockspring, commented: "While the demand for high quality student accommodation is steadily increasing, the availability of high-quality purpose built student accommodation in London remains extremely low. In addition, the highly cash generative nature of the asset class is increasingly compelling to investors seeking the potential for long-term capital and income growth.
"We are very pleased to have been able to execute this deal within ten days, demonstrating our ability to transact strategically and quickly when we identify a clear opportunity to make an immediately accretive acquisition on behalf of our clients."
Source: FTI Consulting