Student Accommodation Investment

Project Description
  • 0
  • November 20, 2017

Provisio, on behalf of a syndicate of investors, bought and converted former university offices ‘on campus’ to student accommodation.

The property was purchased for £950,000 and 22 x 3 bedroom apartments and a five bedroom townhouse were developed at a cost of £1.40 million.

The property has a current value of £3.50 million and rental income of £298,000 reflecting a yield on cost of 12.68% and an uncrystallised gain of £1.45 million based on a current value of £3.80 million.

The property was re-financed with a conventional long term bank loan and the investors initial capital was returned after 18 months.