Commercial property
Investment for sale Prime City Centre Student Accommodation & Office Investment | 28-31 St Ebbes Street, Oxford

Summary

• Arguably Oxford city centre’s most prime private purpose-built student accommodation (PBSA) with additional office investment
• Exceptional student market, which includes one of the most prestigious and highly ranked universities in the world
• 50 en-suite bedrooms and c.6,938 sq ft (NIA) of newly refurbished commercial tech office space
• Core location adjacent to the Westgate Centre and Pembroke College
• Student accommodation let to Bellerbys Educational Services Ltd for a further 17 years (subject to break in 2032) with uncapped, 5 yearly compound RPI uplifts. Sublet to Oxford Tutorial College
• Bellerbys is a wholly owned subsidary of Study Group Ltd which has a Dun & Bradstreet rating of 5A1
• R&D offices let to Locale Ltd for 10 years to July 2030 with no break
• Office rent reflects a very low c.£26.46 per sq ft
• WAULT to expiries of c.14.6 year and 11.2 years to break
• Current total net income of £560,638 pa
• Our client is seeking offers in excess of £11,000,000 (Eleven Million Pounds) for its majority freehold and part long leasehold interest in the property (subject to contract and exclusive of VAT)
• A purchase at this level reflects a net initial yield of 5.50% on the R&D office and 4.50% on the student accommodation, based on standard purchaser’s costs of 6.80%. Assuming annual RPI of 2.5% on the student element, this would show an overall reversionary yield of 5.22% in 2022, 5.75% in 2027 and 6.30% in 2032 and an equivalent yield of c.5.32%