La Salle Investment Management has acquired the Quadrant, a proposed London-based student accommodation site, in a £32 million deal.
The firm said that the price reflected a net initial yield of 6.3%.
LaSalle will fund the construction of the new 328 bedroom development, which is being built by Watkin Jones. The new building will include 258 en-suite bedrooms and 70 studio units.
The accommodation will be available for students at the University of the Arts, which has taken a 21 year lease, with a break at year 15, across all the en-suite bedrooms. The remaining studios will be leased to Watkin Jones on similar terms. Fresh Student Living will manage the accommodation.
Construction is currently underway, and the accommodation is due to be available for students at the start of the 2013-14 academic year.
The transaction follows recent student investments by LaSalle, including a pair of accommodation blocks in Newcastle, in a deal worth £23.1 million.
John Yeend, director of LaSalle, said: “This funding demonstrates our interest in the student sector, which can provide a secure, predictable income stream for our investors and is underpinned by strong occupier demand and a shortage of quality new accommodation.”
Jones Lang LaSalle advised Watkin Jones, while Lawson & Partners acted for LaSalle.