Bromwich Hardy have completed the disposal of 15 student investments on a recently completed development close to Warwick University.
The site originally housed the Dolphin Public House and was sold to developer St Francis Group by Associate Partner James Brookes from Punch Taverns some 5 years ago. The site was taken through planning by St Francis Group and they have constructed 15 mid and end terrace houses of 2 ½ storeys with garden and parking. Each house has an en-suite bedroom on the top floor, two bedrooms sharing a bathroom on the first floor, a kitchen at ground and a living room which is capable of easy conversion into another en-suite bedroom.
Bromwich Hardy has achieved full asking price on every one of the house, excepting two that exceeded asking price. All of the properties have been purchased as student investment with the conversion of the ground floor completed, essentially creating 4 bedroom HMOs that we have been advised are letting out at £22,000 per annum which equates to a Net Initial Yield of between 8.36% and 8.43%.
James Brookes comments:
“Student property has actually been one of the best producing and strongest asset classes for some time in the UK and with the lack of purpose built accommodation opportunities around Warwick University, a development of purpose built HMOs has literally flown off the shelves. The area has also massively benefitted from the removal of a pub with a negative reputation, to create quality purpose built student accommodation in area that has serious undersupply”.