Leeds city centre student accommodation sold for £17.8m

Empiric Student Property plc, the owner and operator of student accommodation across the UK, has acquired a 127 bed student accommodation property in Leeds for £17.8m.

Pennine House was developed by the current management of Empiric (prior to the formation of the company) on behalf of the vendor, British Airways Pension Trust Limited, in time for the 2013/14 academic year.

Neither Empiric nor any of its management team has held any interest in, or been involved with the operation of, Pennine House for over twelve months

The property comprises 127 beds in a mix of studios and two-bed en-suite apartments across eight floors together with communal facilities including a gym, cinema room, study rooms and a common room.

The property also includes a ground floor and basement commercial unit currently let to Living Ventures, trading as Italian bar/restaurant chain ‘Gusto’, on a lease extending to 2041, with five yearly rent reviews, commencing in March 2021.

Located on Russell Street, between Leeds train station and the two main universities, the University of Leeds and Leeds Beckett University, the property will continue to be managed by Collegiate.

Paul Hadaway, chief executive of Empiric Student Property plc, commented: “Pennine House is our third acquisition in Leeds, a Russell Group university city and home to the University of Leeds (ranked 14th in The Times Good University Guide) and Leeds Beckett University, with a full-time student population of over 50,000 (for 2014/15, being the latest information available from HESA).

“Tim Attlee and I know the property extremely well, having developed it on behalf of British Airways, prior to forming Empiric.

“The location and quality of the building make it an excellent fit with the rest of Empiric’s portfolio. Following this acquisition, the Group owns, in aggregate, 323 beds in Leeds, all of which are operational. This acquisition is in line with Empiric’s investment criteria and returns profile.”

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