The UK’s leading provider of luxury student accommodation, Vita Student, is launching a new project in Exeter city centre, offering investors a 7% rental yield assured for five years.
The £17 million project is the company’s sixth new development in less than two years and brings the total number of Vita Student apartments in the UK up to 929, following successful launches in Liverpool, Manchester and Bristol.
The new development is due to be completed in time for the 2014/15 academic year when investors will begin to earn a 7% net return for the next five years, a figure that is nearly 2% higher than the current UK average.
Investment in the student property sector is at its highest point according to Jones Lang LaSalle, with £2.7 billion spent in the market in 2012 – a 125% increase from 2011. Vita Student’s previous launch – Colston Avenue in Bristol – saw 132 apartments sell-out within just seven weeks.
Exeter has recently experienced a huge growth in student numbers which has led to a major shortage of suitable accommodation. Once completed, Vita Student at Portland House will comprise of 161 luxury studios and two-bedroom apartments which will be available to buy off-plan from 26th September with a starting price of £77,950.
Vita Student was founded in 2012 by luxury developer Vita Ventures which has been acquiring land at Russell Group university cities across the UK.
CEO of Vita Ventures, Trevor Moore, commented: “Investor requirement for student property like ours is at an all-time high.
“We are able to deliver such a high yield by driving efficiencies at every level of the construction and operational process while in turn generating high rental returns from students who are willing to pay a premium for the facilities and level of service we provide.
“The rate at which all our projects have sold demonstrates that our model is successfully addressing the market demand.”
Students living at Portland House will benefit from fitted kitchens, en-suite bathrooms and a space-saving foldable double bed with integrated sofa. The apartments also include free high-speed 100MB broadband, Wi-Fi and a flat screen smart TV as well as access to communal areas such as a study hub and leisure facilities.
Student numbers in Exeter have recently swelled to 19,000. This growth can be attributed to the university rising rapidly in the UK league tables culminating in it being named as The Sunday Times University of the Year in 2013.