Apache Capital has sold the last purpose-built student accommodation (PBSA) scheme in its portfolio to Singapore-based investor and developer City Developments for £30m. The sale of the 206-bed Cumberland Place PBSA scheme in the heart of Southampton represents an exit yield of 4.81% and exceeds Apache’s target sale price.
The fully let property, which is arranged over 12 storeys, has achieved 100% occupancy year on year since launch. Amenities include a gym, screening room, 10th floor sky deck and common room with panoramic views of the city across to the Isle of Wight.
Following the completion of the sale of Cumberland Place and the earlier sales of PBSA assets in Cambridge and London to Cambridge City Council and a Greystar-led JV respectively, Apache is now divested from PBSA and will focus on delivering the remainder of its £4.1bn BTR portfolio.
John Dunkerley, CEO and co-founder of Apache Capital, said: “Today’s announcement gives City Developments a high-quality, high-performing asset that is underpinned by a strong location, good design and premium branding. The success of our purpose-built student accommodation assets, reflected in the sale price achieved in all three disposals, is a vindication of our strategy to pursue a highly amenitised, service-driven model in the UK’s emerging build-to-rent sector.”
Jamie Snary, executive director asset management and operations at Apache Capital, added: “Cumberland Place has consistently performed strongly since its completion in 2018 with full occupancy being achieved year on year as well as consistently strong rental growth. As with all our assets, whether in our multi and single-family build-to-rent pipelines or our previous student accommodation investments, Cumberland Place was designed from the outset with the end user, the resident, in mind. This strategy has once again borne success with year on year re-booker rates exceeding market norms and consistently positive resident feedback and this is reflected in the sale price that has been achieved.”
Hugo Noble, director of alternative specialist MTRE, who handled the sale on behalf of Apache Capital, said: “The sale of Cumberland Place reaffirms the appetite for well positioned, high quality student accommodation assets remains strong despite the current wider market conditions. The calibre of the investor interest was reflected in the pricing achieved and through the number of bids received, further highlighting the robustness of the purpose-built student accommodation sector in turbulent economic conditions.”
