In November 2019 Uni2 Rent were approached by a London based investment fund to source suitable sites in and around Nottingham to meet their stringent investment criteria. They were looking for assets to achieve a 7% net yield with a budget of £4 million. Ed Henderson was to lead the project.
Managing over 1200 bedrooms at the time and, with Ed having developed a strong network of developers and landowners within the Nottingham area, we got to work. Within a matter of months, a land opportunity was sourced and, thanks to Ed’s relationship with the vendor and knowledge of the market, were able to agree in principle a ‘forward funding’ arrangement for a 41-unit studio scheme in the heart of student living in Nottingham.
With the project being forward funded by the investor which, in-turn, assists the vendor with development costs and the security of having a buyer locked in at such an early stage, presented opportunities for Ed to negotiate discounts from the end GDV (gross development value) with the vendor. As such, a contract was entered into in July 2020 to deliver the scheme by August 2021 ready for the 2021-22 student in-take – leaving all parties incredibly pleased with the outcome.
Now it was time to fill the building!
Using Uni2 Rent’s experience of PBSA’s previously and, how this type of accommodation very much caters for the international market, we were able to utilise our strong network of international agencies throughout the world and have the building full by June 2021.
The block is now fully occupied and under full management of Uni2.
This particular example shows the full suite in services in which Uni2 Rent can offer; sourcing, development, acquisition, lettings and management.
Agent transition – mid tenancy – 220 Room student property portfolio
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