£30m deal boosts Gatehouse real estate portfolio to £280 million
Gatehouse Bank plc (Gatehouse), a Kuwaiti-owned wholesale Shariah compliant investment bank based in the City of London, has completed the £30m acquisition of a newly built student accommodation property in Glasgow, Scotland. The purchase represents a net initial yield of 7.06% and delivers a cash yield of 8.0% per annum. This most recent transaction follows the acquisition of two earlier student accommodation properties in Loughborough and Liverpool, both of which were also developed by Watkin Jones, as well as a third student accommodation property in Oxford, bringing the total value of Gatehouse Bank's real estate portfolio to £280 million.
Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank stated,
"This is an excellent acquisition that recognises the importance investors are placing in student accommodation as an investment opportunity that delivers outstanding returns. I am pleased to report that the latest Watkin Jones acquisition has proven Gatehouse Bank's position as a market leader in the development of commercial real estate solutions for a savvy GCC investor audience. As the fourth student accommodation property acquisition to date, Gatehouse Bank demonstrates the exceptional performance of a Real Estate team, which has consistently brought to market high performing transactions with solid yields and long term income for the benefit of our investors. With more than £280,000,000 acquisitions to date, these ongoing achievements are a result of Gatehouse Bank's reinvigorated corporate strategy to strengthen its Real Estate investment business line, which is set to maximise the long term wealth preservation of its investor clients.
Adam Cavanagh, Head of Real Estate at Gatehouse Bank said:
"Purpose built student accommodation is already a well-established real estate sector in the U.K. worth approximately £6.5bn, and is one of few asset classes experiencing rental growth. An inherent supply and demand imbalance in Scotland has consistently delivered close to 100% occupancy rates and, with student numbers forecast to grow at 10 times the rate of new completions, we can expect to see sustaining rental growth as well as increasing capital values in the sector."
The property is well located in the centre of Glasgow close to three of the city's major universities including the University of Strathclyde, the Glasgow Caledonian University and Glasgow University. It comprises 565 en-suite rooms and 23 self-contained studios, newly completed for the September 2011 start of term. The property is leased to Fresh Student Living Limited, guaranteed by parent company Watkin Jones Group Limited, for 15 years with no breaks.
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Gatehouse Bank
Gatehouse Bank operates as a Shariah-compliant wholesale investment bank based in the City of London focusing on: Treasury, Real Estate and Shariah Advisory services.
For more information please visit our website www.gatehousebank.com
Watkin Jones Group
Watkin Jones Group is one of the most experienced and extensive developers of student accommodation in the UK having created over 15,000 student units in key University locations in the past decade alone. With a further 2,000 units being completed this year and a significant development pipeline already identified, the Group is focused on the delivery of quality bespoke accommodation for the increasingly discerning and growing student population.
For further information on the Group, student accommodation development, and its other development activities please visit our web site www.watkinjones.com
For further information please contact:
Angelena Lee
Gatehouse Bank
+44 (0) 20 7070 6000
angelena.lee@gatehousebank.com
© Press Release 2011
