Knight Frank has launched West Way Square to market.
Located in Oxford, West Way Square is a fully operational purpose built student accommodation scheme.
Knight Frank is seeking offers in excess of £56m for the freehold asset, reflecting a net initial yield of 5.75 per cent.
The development comprises 264 student bedrooms arranged as 250 studios, eight one-bedroom and six two-bedroom apartments. A wide range of onsite amenities include a gym, cinema room, games room, rooftop terraces and student lounges.
The sale also includes six commercial units, which produce a net income of £419,500 per annum including tenants such as Tesco Express and Iceland.
The property provides students with convenient access to the University of Oxford and Oxford Brookes University, which are ranked 1st and 57th respectively in the UK according to the Times Good University Guide 2023.
Oxford is home to a total of 34,946 full time students, of which 31 per cent are international.
Mike O’Sullivan, a Partner in the Student Property team at Knight Frank says: “This is an excellent opportunity to acquire a prime purpose built student accommodation in one of the most desirable global cities for university education.
“Oxford is currently experiencing restricted planning policies which will affect the future pipeline of new PBSA development in the city with only 339 private PBSA beds in the pipeline.
“As a result, a fully operational and income producing assets such as West Way Square will likely generate a substantial pool of interested buyers.”
The UK's PBSA sector, bolstered by the quality of its higher education system, has consistently displayed resilience.
Despite the maturation and expansion of the UK’s PBSA market, a substantial undersupply issue persists; according to Knight Frank, full-time students outnumber available bed spaces by a 3:1 ratio in several key regions.
According to Knight Frank, the number of full-time undergraduate students across the UK will increase by 16 per cent by the end of the decade.