1st Aug 2014 09:30
LONDON (Alliance News) - Ground Rents Income Fund PLC Friday said it has acquired the ground rents of four prime student accommodation buildings and exchanged contracts to acquire a further two buildings from Vita Student, part of the Select Property Group, in a deal worth GBP7.1 million.
The company said the portfolio, which is a mix of freehold and long-leasehold interests, consists of 848 units across six refurbished buildings in the established student locations of Liverpool, Bristol, Exeter and Southampton.
Ground Rents said the total ground rent income for the six assets will be GBP296,800 a year, reflecting an initial yield of 4.17%.
The ground rents will increase in line with the Retail Prices Index every five years at three of the buildings and every 10 years at the remainder, the company said.
Ground Rents shares were untraded Friday morning, quoted at 99.00 pence per share.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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