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Select Property Group has decided to expand into Newcastle upon Tyne by launching its ninth Vita Student residence for sales to investors. This comes after the successful opening of five new student dwellings, all over the UK, in September.
 
Vita Student at Westgate is a 259-bed residence and aims to represent the next generation of student accommodation, where quality and overall living experience are both considered top priorities. Gone are the days of cheap, dingy and ramshackle student digs. 
 
Vita Student is seen as a good investment opportunity simply because of the high occupancy rates involved with student accommodation – people studying a degree in somewhere that isn’t their hometown need somewhere to live, after all. Given the high demand, higher rental returns are achieved and a more robust investment model is delivered.
 
The high demand for student accommodation has been seen in recent months as Vita Student reached 100% occupancy across its five new sites, with close to 1,000 beds occupied in Manchester, Liverpool, Bristol, Exeter and Southampton.
 
Investor confidence in the Vita Student brand has been strong enough to see international clients spotting the potential of the Newcastle project – so much so, half of the studio apartments have already been sold off-plan to the Select Property Group database. The remaining properties have now been brought to the open market, with all transactions going exclusively though Select Property.
 
A guaranteed 7% rental yield for five years which will start to be paid once the residence is opened is being offered to investors, whilst prices range from £86k-£159k (with the return being handed out on a termly basis).
 
Situated in a prime location in Newcastle city centre, Vita Student at Westgate is only 100m from the recently revamped train station and just a stone’s throw from the main university areas. The accommodation includes high-specification, self-contained studios over seven storeys. There is also a big communal ‘hub’ space with a cinema room, games area and gym, as well as amenities such as a laundry and shared study rooms. This area offers students a shared area for socialising.
 
In its 2014 Spotlight on UK Student Housing report, Newcastle was promoted to the top tier of Savills’ investment rankings. Currently, the city has one of the highest purpose-built accommodation premiums in the whole country – chiefly due to a supply-demand ratio of one bed to every five students.
 
“The investment demand for purpose-built student accommodation (PBSA) has sky-rocketed in recent years and the sector has certainly proven itself in a testing economic environment, with many private providers now coming to the fore,” Mark Stott, CEO at Select Property Group, commented. 
 
“While others can say they build luxury living quarters, Vita Student has evolved the PBSA concept and risen above the general market due to its commitment to providing students with the ultimate living experience,” he added. “As has been proven by the 100% occupancy level at the other residences in our portfolio we have got the proposition spot-on and created an inimitable product.”
 

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