On behalf of REI, we’re pleased to offer for sale Virginia House, Worcester a long-income, city-centre student accommodation investment;
- Price: offers based on £1,950,000 subject to contract
- Income: passing rent £145,000 per annum which equates to just £3,452 per room.
- Yield: net initial yield of 7.00% (allowing for purchaser’s costs of 6.26%)
- Lease: let to Virginia House Limited on a 125-year FRI lease from 10 March 2020 to 9 March 2145 (119 years unexpired)
- Reviews: annual upward-only rent reviews linked to a percentage increase of the tenant’s gross rent received
- Accommodation: 15,332 sq ft (GIA) arranged as 42 self-contained rooms (18 studio, 12 studio deluxe, 12 double) plus communal amenities including gym, cinema room, dining and recreational areas
- Location: prominent corner position on The Butts in Worcester city centre, adjacent to The Hive Library and around 450m from the University of Worcester City Campus
- Parking: 10 car spaces (including 1 disabled space)
- Occupancy / trading: 100% occupancy since trading commenced in 2020 with tenant gross rent from the student business is circa £375,000 per annum (vs rent payable of £145,000 per annum)
- Asset management angle: tenant is exploring adding two additional floors, stated as potentially delivering a further 28 rooms (subject to planning)
