A collection of units within a purpose-built student accommodation (PBSA) scheme located in the heart of Liverpool is currently being offered for sale. This opportunity encompasses fifteen units, which include three well-appointed studio apartments and twelve cluster flats, all situated within the One Islington Plaza development. These units are held on a long leasehold extending for 250 years from October 2016. The entire scheme, completed in 2019, includes a total of 317 studio and cluster flats.
The Investment Opportunity
James Bunce, a senior surveyor from the Leeds office of Watling Real Estate, has been appointed to manage the sale of these units. He highlighted the benefits of this investment, stating: “This is a fully managed, hands-off investment operated by Cloud Student Homes, situated in a prime location within a short 12-minute walk of the University of Liverpool and a 13-minute stroll to Liverpool John Moores University. Additionally, Liverpool Hope University’s Creative Campus is just a minute away on foot.” The property enjoys a robust occupancy rate of around 95%, with a net operating income estimated at approximately £2,867 per unit for the 2024/2025 academic year.
Liverpool’s Student Market Dynamics
Bunce further elaborated on Liverpool’s significance in the UK student accommodation sector, noting that the city is home to about 70,000 students across various higher education institutions, with international students constituting roughly a quarter of this population. He remarked, “One Islington Plaza combines strong historical occupancy rates, professional management, and a resilient income profile, making it an appealing proposition for investors seeking exposure to one of the UK’s most robust student markets.”
Next Steps for Interested Buyers
Offers are currently being sought for the portfolio, with a preference for complete offers encompassing all units. However, Watling Real Estate is open to considering bids for individual units or smaller collections. This flexibility may attract a broader range of investors looking to enter or expand their presence in the lucrative PBSA market.