_Knight Frank disposes of two best in class student residences for £90 million

LSPIM developed the properties, which currently provide homes for over 700 students, on behalf of a US-based private investor. The deal represents the largest transaction for Knight Frank during the first quarter of the financial year.

The properties have been purchased by an unnamed far eastern investor. The properties are LSPIM’s first venture into purpose-built student accommodation. In December 2015 the company bought Crown House in Sheffield’s popular Cathedral Quarter and developed the former office block into high-end student accommodation comprising 355 luxury studio bedrooms which was opened to students in September 2017.

In April 2017, LSPIM acquired Symons House, a 1980s four-storey office building in Leeds. It developed the site into a 22-storey student accommodation with 351 beds which opened in January 2020.

Both properties have 8,000 sq ft of amenity space with lounges, a study area, a private dining area, a cinema, games area, a fitness suite and outdoor areas with BBQ and open-air cinema.

Rachel Pengilley, Partner in Knight Frank’s Student Property Team, commented: “This transaction represents the most significant deal in the UK student accommodation market since we entered lockdown in March. The best in class assets are located in prime university cities, with Crown House benefiting from a strong trading history.

"The acquisition demonstrates continued confidence in the sector from overseas investors, particularly at a time when there are some wider concerns regarding student numbers for the academic year 20/21. Despite a tumultuous first half of 2020, the long-standing fundamentals of the student sector remain attractive, and we are seeing renewed interest to acquire from a variety of funding sources.”