Cushman & Wakefield has advised on the forward purchase of a purpose built student accommodation scheme in Bristol city centre.
F3GROUP has agreed the sale to one of DWS’ German real estate funds. The purchase price is the equivalent of around EUR 62.8 million (£57 million) and construction will complete ahead of the 2021/22 academic year.
Located in the Redcliffe area of Bristol city centre, the scheme is designed by award-winning architects GSS and once complete will provide state-of-the-art purpose-built student accommodation, with 357 student beds in total. This will consist of 322 en-suite cluster rooms and 35 studios. Total floor space is 8,575 sq m and amenities include a gym, study space, bike parking, cinema room and communal lounge.
“F3 has an outstanding reputation built over the past 30 years for managing and developing high quality schemes across multiple sectors. This strategic exit demonstrates that even in tough economic conditions there is still strong demand from market leading investors for long term income assets”, said Gavin Gleave, Chief Executive Officer at F3GROUP.
"We are extremely pleased with this investment into a thriving City and one of the UK’s best student markets and we are looking forward to working together over the coming months to bring this development to fruition," said Mike Hill, Head of Real Estate Transactions, UK and Ireland, at DWS.
“We are delighted to have acted on the behalf of DWS in the forward purchase of this prime PBSA scheme. The University of Bristol continues to experience a significant growth in student demand for their courses and its population. This aligns with the University’s business plan to develop high calibre courses around the major growth sectors of the global economy including cyber, tech, business and life sciences. This, together with the challenges to develop new PBSA within central Bristol and a 15 year RPI index linked lease to the University, it makes for a compelling investment acquisition,” commented Nick Allan, International Partner Capital Markets, Cushman & Wakefield.
On completion, the property will be connected to the Bristol City’s District Heat Network as part of the overall sustainability strategy, aiming for a BREEAM Excellent rating for the building. The building is leased to the University of Bristol on a long-term basis.