Kout Capital has recently acquired Albert Place, in Newcastle from Crosslane Student Developments, part of the Crosslane Property Group (“Crosslane”), for £10.4 million. Albert Place is a freehold purpose-built student accommodation development scheme comprising 134-beds which has been completed in September 2017 by Crosslane, ahead of the start of the 2017/2018 academic year.
The purchase was completed on behalf of Kout Capital’s trusted clients and is initially funded in full by equity.
Located in the north east of England, 103 miles south of Edinburgh and 277 miles north of London, Newcastle is a major university city in England and is part of a wider housing market area which extends to include North Tyneside, Gateshead and parts of South Northumberland. Newcastle is known for housing universities such as Newcastle University and Northumbria University. Albert Place is prominently located, 300 meters away from the University of Northumbria City Campus East, 0.3 miles from the main University of Northumbria Campus, and within close proximity to Newcastle University.
The asset is of high development standards with outstanding specification. It comprises stylish and modern ensuite bedrooms in clusters of 4 to 8, each sharing an open plan kitchen, dining, and lounge area. The property comprises 133 cluster bedrooms and 1 studio apartment together with ancillary facilities. A well-resourced gym, a large communal lounge, and a private landscaped courtyard are all located within the scheme. Moreover, the property is expected to generate an annual gross yield of 8.76% with remarkable income growth opportunities.
The property is operated by Prime Student Living (“PSL”), an established and recognized specialist student accommodation operator who will provide day-to-day asset management operations. The Kout Capital management team, together with PSL, will continuously supervise and monitor the asset’s performance.
The team believes that this property is of prime qualifications and is competitively placed in the market with a superior advantage in terms of the amenities and the quality of residential space offered to students. To further enhance the value of this investment, Kout Capital is currently seeking to acquire similar properties with a high number of student influx from both the UK region and internationally. Hence, Albert Place is part of a larger strategy to form a strong portfolio of 4 to 5 high-quality, purpose-built student accommodation schemes across the UK market worth an estimated £45-50 million in combined value.