Regents Godiva has sold the freehold, forward funded student accommodation building Godiva Place, Coventry to Aviva Investors for £74.5m (€88m) (£96,869/€114,408 per bed).
The 770 bed property will be tenanted by Coventry University on a 30-year lease, at a rent of £3.4m/year – and has a delivery date of September 2018. The University has a buy back option at £1 (€1.18) at expiry.
Knight Frank advised Regents Godiva, Colliers International advised Aviva Investors.
Shaun Roy, Head of Specialist Investment at Knight Frank, commented: “this type of product works well for the annuity funds with long term liabilities and with the buyback option increasing in value every year for the University it is a win-win for all parties involved.”
Regents Godiva commented: “We are delighted to have worked with the University to create such an innovative structure that benefits all parties and look forward to delivering a high quality product.”
Julian Taylor, Aviva Investors, commented "Income strip investments such as this are ideally suited for investors in our Long Income Funds and we look forward to working with Regents Godiva on this project."
