A fledgling property fund operated from the Channel Islands has taken ownership of a major student residence in the heart of Dundee in a £5.5 million deal.
Guernsey-based Victus European Student Accommodation Fund said it would now be looking to make further acquisitions across Europe after tying up the purchase of Keiller Court in Dundee.
The building in Horsewater Wynd, between the twin campuses of Abertay and Dundee universities was renovated in 2011 and has the capacity to house 128 students during term time.
Since its conversion two years ago the property has maintained an occupancy rate of more than 95%.
The building is let through Prime Student Living, a company which manages more than 1,000 rooms on behalf of investors, fund managers and institutions across the country.
Victus claims to be the first open-ended fund to identify the significant financial opportunity posed by the student lettings market across Europe’s major university cities.
It is now looking for further openings in the market in the hope of providing returns to investors of at least 10% per annum.
Property investment specialist Crosslane Group was tasked with identifying potential openings for the new fund.
Mark Stubbs of Crosslane said: “Investors have seen strong returns from UK student accommodation and are looking towards how this can be extended.
“Victus will take advantage of the student accommodation opportunities in mainland Europe through a series of the group joint-venture partnerships, with one already agreed in Germany.”
Colleague Andrew Jamieson said Keiller Court made perfect sense for Victus.
He said: “The Dundee acquisition is an excellent addition to the fund’s portfolio due to its high occupancy rates and excellent location.”
The change of ownership will not affect the day-to-day operation of the building.
Andrew Henton, chairman of the Victus Fund, said: “We are very pleased with the transactions we have completed during the first three months since the fund launched.”