Apache Capital Partners is pleased to announce today that they have completed, on behalf of their Social Infrastructure business, the acquisition of a 210 bed premium student accommodation development in Kingston Upon Thames, London. The total development value is expected to be approximately £49 million. The acquisition was completed through a Joint Venture with Investra Development, a private development and investment firm, and this was an off market transaction.
The property, known as Kingsgate House, is currently being developed into a prime, purpose-built student accommodation asset and will comprise 210 high quality studio rooms of various sizes. The property will be finished to a very high specification and includes 4,835 sq ft of retail accommodation.
The site is situated on Kingsgate Road and is well located within 10 minutes walk of the main Kingston University campus and close to the city centre. The property has access to excellent transport links into Central and West London.
Outline planning has been obtained and Apache Capital intends to secure detailed planning consent during 2015, with practical completion expected in time for the 2017/18 academic year.
Following this transaction, Apache Capital currently has a portfolio of premium student accommodation schemes valued at approximately £203 million over three assets comprising 1,509 units. Apache Capital has a total portfolio of assets under management valued at approximately £335 million.
Richard Jackson, Co-Founder and Managing Director of Apache Capital Partners, said: “This acquisition is in line with Apache Capital’s Social Infrastructure strategy to invest in a diversified portfolio of modern, premium student accommodation properties. London continues to be one of the most popular student destinations in the world and demand for UK higher education continues to rise. This demand coupled with continuing supply constraints, leads us to view the market as a compelling investment opportunity.”
“We are delighted with this transaction with Investra Development, our Joint Venture partner, which took three weeks to complete from agreement of terms, including debt finance from Greenoak. We look forward to working with Investra Capital on securing detailed planning and developing and operating this asset.”
Nick Hornby, Development Director of Investra Development, commented: “This site not only provides an excellent student opportunity but it is also a key development site in the regeneration of the Kingston town centre. Investra Development is looking forward to working with Apache Capital Partners in delivering up a high quality student scheme. This is now our third scheme since inception of the company in May 2014 and fits perfectly with our strategy of buying prime sites in under supplied centres.”
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