Newspaper article The Journal (Newcastle, England)

Student Residence Beds Sell for PS90k; EDUCATION

Newspaper article The Journal (Newcastle, England)

Student Residence Beds Sell for PS90k; EDUCATION

Article excerpt

Byline: COREENA FORD coreena.ford@ncjmedia.co.uk

THE multi-national and multimillion-pound nature of the North East student accommodation business has been laid bare in a deal that values each single bed at more than PS90,000.

Property investors have snapped up three Newcastle student accommodation schemes in deals worth PS51.5m - with each of the 566 beds going for an average of PS90,989.

Guernsey-based Victus European Student Accommodation Fund has bought St James' House for PS16.5m and St James' Point One and Two for PS35m from developers Crosslane, the latest in a string of massive deals for student blocks in the city.

The transaction marks the largest investment deal involving student property in Newcastle, coming a year after two similar deals in which national and overseas investors grabbed a foothold in the lucrative North East student market in deals collectively worth PS59.1m.

Opposition councillors in the city say there are too many student developments, but recent deals shows the level of money involved in the student flats, making developers determined to push for more. Manchester-based Crosslane has more schemes under construction and is eyeing further development opportunities.

However, one planned scheme - to demolish Technopole House, near Manors Metro station, to make way for a 462-bed scheme - was knocked back by city planners on the grounds of its size and scale, triggering a rethink over the site.

Crosslane is now seeking permission to convert a former office in King's Manor instead, reconfiguring the interior to house 140 studio flats.

Newcastle University and Northumbria University now have over 70% and 114% more students respectively than they did in 2000, and with those figures set to increase, Crosslane said it is pleased to help meet the demand for student accommodation in the city. …

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