Cordea Savills buys and sells

Cordea Savills has completed the sale of two assets on behalf of its Student Hall Fund and the purchase of a new prime project in Edinburgh. The purchase comprises the buildings and site of a redundant brewery in Sugar House Close for an initial payment of £8.25m.

The site will be redeveloped with Watkin Jones at an expected cost of £13.5m to create a mixed-use development comprising fully managed student accommodation. The property benefits from a flexible planning consent that allows it to be used as an apart-hotel during the Edinburgh Festival and outside of term time. The asset is expected to deliver a net yield of 6.5 percent from August 2012.

The deal has also been structured to ensure the fund will still receive strong income throughout the construction phase and includes Studios 51, Bagot Street, Birmingham, for £11.5m and Neuadd Willis 1&2, High Street, Bangor for £16.25m. The assets were sold to Knightsbridge Student Housing, a new student accommodation investment company backed by Oaktree Capital Management.