After successfully opening the doors to five new student residences in September, Select Property Group has decided to expand into Newcastle upon Tyne, launching its ninth Vita Student residence for sales to investors.
Vita Student at Westgate, Newcastle, is a 259-bed residence and represents the next generation of student accommodation with Select Property Group having created the brand to give more consideration to the overall living experience rather than just delivering high quality accommodation. This approach has meant that Vita Student transcends other investment opportunities in the industry simply because occupancy rates cannot be matched by other providers. Consequently, higher rental returns are achieved and a stronger investment model is delivered.
This has been evidenced in recent months as Vita Student achieved 100% occupancy across its five new sites, with nearly 1,000 beds occupied in Manchester, Liverpool, Bristol, Exeter and Southampton.
Investor confidence in the brand is so high that international clients have recognised the opportunity that the Newcastle project represents, with 50% of the studio apartments already sold off-plan to the Select Property Group database. The remaining properties are now available to buy on the open market, exclusively through Select Property. Investors are offered an assured 7% rental yield for five years which will start to be paid once the residence is opened. Prices range from £86k – £159k and the return will be given out on a termly basis.
Vita Student at Westgate is located in a prime location in Newcastle city centre just 100m from the recently redeveloped train station and only minutes’ away from the main university areas. The residence comprises high-specification, self-contained studios over seven storeys, while incorporating a large communal ‘hub’ space which gives students a shared social area with a cinema room, games area and gym as well as amenities such as a laundry and shared study rooms.
Newcastle was promoted to the top tier of Savills’ investment rankings in its 2014 Spotlight on UK Student Housing report and currently has one of the highest purpose-built accommodation premiums in the whole UK – primarily due to a supply-demand ratio of one bed to every five students.
Mark Stott, CEO at Select Property Group said: “The investment demand for purpose-built student accommodation (PBSA) has sky-rocketed in recent years and the sector has certainly proven itself in a testing economic environment, with many private providers now coming to the fore.
“While others can say they build luxury living quarters, Vita Student has evolved the PBSA concept and risen above the general market due to its commitment to providing students with the ultimate living experience. As has been proven by the 100% occupancy level at the other residences in our portfolio we have got the proposition spot-on and created an inimitable product.”