L&G buys £31m Winchester student village

Legal & General Investment Management Real Assets, on behalf of its LPI Income Property Fund, has increased its investment portfolio to more than £870m after completing the acquisition of the 399-bed Queens Road Student Village in Winchester from a private investor. Hanover Green advised L & G on the purchase.

The property is let to the University of Winchester for 40 years at a rent of £1.3m pa and was secured for approximately £31m. The lease incorporates annual rental increases linked to RPI.

The Queens Road Student Village is located within the University of Winchester Campus in Winchester City Centre.

The campus is situated on the west side of the City Centre within a ten minute walk of Winchester station and the central shopping area.

The purpose built property was constructed in 2010 and offers 399 student bedrooms (375 en-suite cluster rooms, 23 twin flats and one accessible room) arranged over seven self-contained buildings.

Launched in 2010, following this latest acquisition, the LPI Income Property Fund now has £870m of assets under management.

Derek Gilby, Senior Fund Manager at L&G, said: “The purchase of Queens Road Student Village in Winchester is in line with our investment strategy for the Fund, offering a secure long term income stream from an investment grade University. We are currently in a low interest rate environment and with annual rental uplifts linked to inflation we can ensure stable and resilient returns over the long term.”

Professor Neil Marriot, Deputy Vice-Chancellor at the University of Winchester, said: “The University of Winchester is pleased to partner L&G to be able to offer our students with affordable, high-quality, on-campus accommodation on a long term sustainable basis.”