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Babington Lane, Derby DE1

Opportunity to acquire a New Student Accommodation Investment Located in Derby City Centre
For sale
  • Opportunity to acquire a new student accommodation investment.
  • Strong regional UK student city.
  • Located in Derby city centre in a highly prominent position.
  • Freehold.
  • The property comprises 38,923 sq ft (GIA) arranged over lower ground, ground and two upper floors.
  • Completed in October 2020 the property provides 108 self-contained studios.
  • Finished to a high specification with each studio benefitting from an en-suite bathroom and a kitchenette.
  • Total current gross income of £887,432 pa equating to £158 per week per studio.
  • Current operational costs in the region of £190,000 per annum.
  • Plus, a vacant ground floor retail unit which provides opportunities to enhance the income by letting or creating additional student accommodation, subject to the necessary consents.
  • Very strong market fundamentals for UK Student Accommodation assets.
  • Attractive supply and demand dynamics are driving demand in Derby.
  • The property has an EPC rating of B – D.
  • Offers are sought in excess of £10,500,000 (Ten Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT.
  • Based on standard purchasers’ costs of 6.70% a purchase at this level reflects:
    7.92% Net Initial Yield exclusive of operating expenditure 6.23% Net Initial Yield net of operating expenditure. £270 per sq ft Capital Value.
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