Legal & General has announced that it has purchased the long leasehold of a modern student accommodation residence which has been fully let to Christ Church College, part of the University of Oxford, for approximately £37.1m. The purchase has been made on behalf of Legal & General Retirement.
The UK is home to one of the strongest higher education systems globally, attracting international students and academic talent, vital to the long-term prosperity of the UK economy. Boasting 33,650 full time students, the University of Oxford remains one of the world’s premiere Universities with a significant demand for accommodation close to campus. Modern accommodation is therefore essential to meet this requirement and cater for a first class education experience.
The property, situated on St Aldate’s & Queen Street, is a modern student halls of residence, providing 133 en-suite rooms with shared kitchen facilities and 110 cycle spaces. Located within the Central Conservation Area and the West End Regeneration Area, the property sits within the heart of the city of Oxford, walking distance to Christ Church College.
Given its central location, the property benefits from a range of public transport links and is highly accessible by foot and by cycle. Oxford railway station is also located approximately 860m to the west of the site.
Legal & General were advised on this acquisition by Jones Lang LaSalle.
Tom Roberts, Head of Strategic Investment at LGIM Real Assets, commented: “This is an excellent acquisition for our annuity portfolio, matching our continued appetite for long term income streams which can offer a hedge against inflation. The modern accommodation, which has been fully let to a world class, investment grade institution, and its central location will remain an attractive prospect for Oxford’s student population, whilst providing top quality facilities to help promote a quality education.”
Eleanor Bucks, Managing Director, Direct Investments and Real Assets, Legal & General Retirement, commented: “This transaction is an excellent opportunity to add to our investments in high-quality, long-term UK assets, matching our commitments to securing the pensions of our members and connecting pensions to the UK economy.”
