UBS Asset Management Real Estate & Private Markets has acquired a student accommodation asset in Nottingham for £59.8 million.
The property in central Nottingham is close to both the University of Nottingham and Nottingham Trent University, and can house 483 students across 340 dwellings. It was purchased from Tosca Mill 1, backed by Toscafund via its investment in Mabec, and provides a net initial yield of 5.25%.
Originally a mill, the site was redeveloped in 2019 as student accommodation, with modern purpose-built features, including a gym and cinema room. Nottingham has more than 70,000 students enrolled in its two universities, comprising 12% of the total population.
The Tosca Mill site is managed by property management firm Fresh Property Group.
Oliver Abram, portfolio manager at UBS-AM, said: “This transaction supports a key focus area for our UK core real estate strategy which is to target income accretive assets within the student accommodation sector, offering an opportunity for further capital growth. The acquisition complements the strategy’s current purpose-built student accommodation holdings, where we have achieved consistently high occupancy levels, providing strong income returns as the sector stabilises post-pandemic.”
UBS Asset Management Real Estate & Private Markets was advised on the transaction by TT&G Partners.
Date published: 21 March 2022