Manchester student blocks sold in £10.8m deal

Two student accommodation sites in Manchester have been sold in an eight-figure deal.

Commercial property consultancies Jones Lang LaSalle and Lambert Smith Hampton (LSH) facilitated the sale of the Moss Court property and the City Edge scheme from one high net worth individual to another for £10.8m.

Moss Court is a four-storey block of 108 beds with parking and is located at the university campus in the Fallowfield area of South Manchester.

City Edge, meanwhile, comprises 69 beds across three buildings near the Birley Fields campus.

LSH’s Manchester-based lead surveyor for PRS and student accommodation, Ian Scott, said: “This transaction continues to show the levels of demand and relatively aggressive pricing within the Manchester student accommodation market.

“The Manchester market continues to suffer from an under-supply of high quality new accommodation, especially within key university locations outside of the city centre.”

He continued: “The council’s memorandum restricting new development from private developers has constrained the market somewhat, which in turn, has restricted investment opportunities. As a result, there have been only four key transactions occurring in the last 12 months.

“Going forward we see the market receiving strong investment demand, both domestically and internationally as the student market continues to provide a safe haven for investors during times of economic uncertainty.”

JLL surveyor George Oakey commented: “The student housing market continues to attract demand from global investors and the recent disposal of Moss Court and City Edge is testament to this.

“We’re aware of a number of purchasers who missed out on this opportunity keen to acquire similar stock in Manchester.”