The market has opened for a fully operational student accommodation asset in Preston, presenting an exciting opportunity for investors. The 244-bed purpose-built student accommodation (PBSA) scheme, known as Friargate Court, is currently up for sale at a price of £9.75 million. This initiative is being managed by FRP Advisory, who have engaged the student property team at Knight Frank to facilitate the sale of the asset, located on Market Street West.
The Asset Overview
Since its completion in 2016, the Friargate Court scheme has provided a mix of cluster en-suites and studios, catering to the diverse needs of students. The accommodation is complemented by a range of on-site amenities, including a gym, communal lounge, games area, and retail space, making it a desirable living option for students in the area.
Market Context and Investor Appeal
Toby Thomas, an associate in the student property team at Knight Frank, highlighted the unique nature of this opportunity, stating, “Friargate Court offers a rare opportunity to acquire a well-located, operational PBSA asset at an attractive price point, in a market where supply still doesn’t meet demand.” This sentiment reflects the ongoing challenges within the UK PBSA market, where demand consistently outstrips supply, leading to strong leasing momentum as the upcoming academic year approaches.
Potential for Growth
The scheme is not only appealing to students but also has the capacity to accommodate key workers and apprentices, thereby enhancing its income diversification potential. This characteristic positions it favourably for investors looking to maximise returns through effective asset management. Thomas further emphasised that there is a clear opportunity for investors to improve leasing performance and increase revenue through hands-on management strategies.