Kexgill has officially launched Kexgill Court, a purpose-built student accommodation (PBSA) scheme offering 47 beds, located in the heart of Liverpool city centre. Carrick Real Estate has been appointed to market this asset, strategically situated at 19 Gildart Street within the city’s well-established university quarter.
The Details of the Scheme
The scheme comprises 47 student bed spaces distributed across the ground and five upper floors. Offers are being invited in excess of £3.475 million, which reflects a gross yield of 8.78% and an approximate price of £74,000 per bed. Currently, Kexgill Court is fully let on a 48-week contract, generating a contracted annual rental income of £305,280, translating to about £6,495 per bed per annum, or £125 per bed per week.
Market Context and Growth Potential
Notably, the passing rent is below the current market levels for the city centre, which indicates potential for rental growth once existing agreements expire. Kexgill Court is conveniently located within walking distance of prestigious institutions such as the University of Liverpool, Liverpool John Moores University, Liverpool School of Tropical Medicine, and Liverpool International College, making it a prime location in one of the UK’s largest higher education markets.
Demand vs. Supply
Liverpool boasts a full-time student population of around 55,840, while approximately 26,700 students find themselves unable to access PBSA, creating a significant supply deficit. This gap highlights the growing demand for such accommodations in the city.
Investment and Development Insights
Furthermore, Kexgill Court is situated within Liverpool’s Knowledge Quarter, a 450-acre innovation and education district that has attracted over £1 billion in committed investment, including the Paddington Village development. This ongoing investment is anticipated to bolster long-term student demand in the area.
According to Carrick Real Estate, Liverpool City Council has recently adopted a more cautious stance regarding new PBSA developments, which is likely to limit future supply. Meanwhile, well-placed city centre accommodations continue to achieve high occupancy levels and experience rental growth. Comparable PBSA schemes in Liverpool are currently achieving rents between £140 and £170 per bed per week, which further emphasises the upside potential for Kexgill Court.