The nine multiple occupancy properties are in prime student rental areas in Lenton and the Arboretum. They will accommodate more than 50 students and generate £264,731 per annum in rental income, with an impressive yield of 8.1%.
The acquisition follows recent headlines that there is a demand for student accommodation in Nottingham. One in 12 homes in the city is now student accommodation, with 11,000 student homes in the city.
Michael Sahota, from MS Estates, said: “We were approached by the seller of the properties directly. I think that he was a little surprised to learn what the market was like and what he could achieve. “We told him that we had clients who would purchase the portfolio and do so with no fuss. We have the knowledge, experience and team who can deal with all types of transactions.”
Michael, said: “The seller of the nine properties is a highly respected landlord in Nottingham who has continued to refurbish the properties over the last ten years, taking them back to their original brickwork and finishing to a high standard with quality furniture and fittings.”
Lucy Barlow (lettings manager at MS Estates) said that ‘this sale reflects the increasing student expectation of housing in recent years. More of them are willing to pay a premium in rent for better quality accommodation, and this buyer will not only provide that in the finish of the houses but in the management of them also’
Michael, who runs the Lenton based MS Estates business with wife Satty, handled the instruction and was delighted to complete the acquisition. MS Estates are now seeking other similar opportunities in Nottingham for a range of high performance clients.
Although this is still a very sizeable deal, it is not the largest that MS Estates have handled. Back in 2013 Michael brokered a £5 million deal for a portfolio of 16 properties, housing 99 students.
The London institution that bought the portfolio , the name of which has not been revealed, refurbish all of its properties to a very high standard. A spokesman for the institution, said: “Nottingham is a popular student town which attracts a high calibre of students with some of the best yields in the UK for student property.”
More information can be found at: www.ms-estates.co.uk.