Background and Opportunity
- Acquisition of a 242 bed purpose built student accommodation property serving the Manchester market
- Opportunity to create value by converting office space to further student bedrooms and improving the amenity offer
- Light refurbishment of common areas to assist in unlocking reversionary potential
Transaction Progress
- Management was replaced and business plan fully executed
- The JV managed to increase rents by 73%, increasing the eventual yield on cost to 11%
Current Status
- Property sold in Q3 2024 to an institutional investor with our local operating partner remaining in the transaction
- Exit generated a 67% IRR and 2.7x equity multiple for Revcap, materially above underwriting
