After twelve years in London’s west end, Generation Estates the student housing specialist has relocated into new offices in Chelsea. The new premises at 13 Radnor Walk have been leased from local property company Martins Properties. The loft style offices provide an attractive working environment close to the extensive facilities of the Kings Road.
Director Gareth Davies said: “Following the sale of Pure Student Living in March 2015 and completion of the final development in Whitechapel in August 2015, Alan Artus and I can now focus on our next venture in student accommodation. As a very established developer and operator in the student space, we no longer need a Mayfair base and are both looking forward to the move to Chelsea.”
The Carlyle Group & Generation Estates Ltd have now sold the last two assets acquired to facilitate their very successful student joint venture, Pure Student Living.
Skyline Plaza at 80 Commercial Rd is an apartment block over a ground floor showroom let to Bathstore. The ground rental income from the apartments is £30,000 per annum whilst the Bathstore unit is producing £90,000 per annum giving a combined income of circa £120,000.
The interests were marketed separately using Singer Vielle’s “clicktopurchase” platform but a single party represented by Norton Rose won the bidding paying £3,160,000 which reflects a yield of sub 3% for the ground rents and 4.5% for the Bathstore property.
Nicky Barker of The Carlyle Group said: “We have never used anything like clicktopurchase before when selling. The ease of use, speed and professionalism bought to the selling process was a delight. Above all, it helped us to deliver an impressive result but with certainty.”
Gareth Davies of Generation Estates said: “This is the second time we have sold a property using Singer Vielle’s clicktopurchase platform and yet again it has resulted in an excellent result.”
LetterOne has completed the purchase of the Pure Student Living portfolio from The Carlyle Group and Generation Estates.
This premier purpose built student accommodation business comprises 2,170 beds across five prime central London sites with an ideal geographical spread. Four of the assets located at Finsbury Park, Hammersmith, Bankside and City University are operational whilst the fifth facility at Whitechapel will deliver the final 417 rooms when it completes in August this year.
The acquisition has been structured in two phases with the operational assets transferring immediately whilst Generation are retained as development manager to complete the Whitechapel scheme.
Carlyle entered the student accommodation market in 2010 after forming the joint venture with Generation Estates and has been investing funds on behalf of its European Real Estate Fund, CEREP III.
JLL advised The Carlyle Group and Generation Estates.
The joint venture between The Carlyle Group and Generation Estates today announced the sale of 124-128 Goswell Road, Islington to West Sussex County Council Pension Fund.
The property comprises the commercial element of the development undertaken by the joint venture for City University London to provide new student accommodation, teaching space and a Sport England standard Sports Hall. The Student accommodation forms part of the Pure Student Living platform and comprises 805 new beds adjacent to the university’s Northampton Square campus.
The sports hall of circa 33,000 sq. ft. and teaching space of 19,300 sq. ft. are held by City University London on separate leases for terms of 25 years and subject to five yearly rent reviews where the rent is linked to RPI with a collar of 2% and a cap of 4.5% per annum. The purchaser acquired a long leasehold interest for a term of 127 years from 1st July 2012. The annual rent is just under £1m per annum.
“A number of institutions were keen to secure this RPI linked income stream secured against brand new accommodation on Goswell Road which is becoming a vibrant part of London in between Clerkenwell and Islington.” said Gareth Davies, Director Generation Estates.
JLL and GM Real advised The Carlyle Group and Generation Estates whilst the purchaser was represented by Aberdeen Asset Management and Knight Frank
The joint venture between the Carlyle Group and Generation Estates has forward sold its 25,000 sq. ft. office development at 122-126 Back Church Lane in Whitechapel to Boultbee Brooks for circa £12.5m. The site was acquired last year and is now under construction due for completion next summer. The joint venture which is focused on purpose built student accommodation acquired the property together with 60 Commercial Road which is being developed to provide 417 beds.
“A planning condition requiring the offices to be developed before the student accommodation could be occupied was best satisfied by a signal party undertaking both developments. The deal with Boultbee de-risks the project from our perspective allowing us to focus on the student element.” said Gareth Davies, Director Generation Estates.
The transaction was concluded following a very short and well targeted marketing campaign run by CBRE and Hatton Real Estate which produced nine offers for the property which is located in the increasingly attractive and fast changing eastern City fringe.
Following a successful transaction at Pure Hammersmith, the national gym operator, Pure Gym is leasing a new 18,000 sq. ft. facility in Pure Student Living’s building at 201 Isledon Road in Finsbury Park. The rent is in the region of £200,000 per annum and is subject to RPI linked uplifts at rent review.
The transaction was made possible following planning consent for a change of use that was obtained by Generation Estates in December 2013.
Montagu Evans acted as letting agents and planning consultants on the transaction.
Two well located new student residences have been opened by Pure Student Living. The schemes in Bankside near Tate Modern and Hammersmith add a further 568 beds to the operational platform taking total operational beds to just over 1000 whilst a further 805 beds will be delivered for City University this time next year.
Pure Bankside is very well located for Kings College Students and LSE while Pure Hammersmith provides high quality studio accommodation in west London which is perfect for students studying at Imperial College. Located on the site of the former Hammersmith Palais venue, the entrance hall pays homage to the building’s musical heritage with images of famous former performers.
Pure Student Living, the joint venture between the Carlyle Group and Generation Estates, has agreed a deal to develop a 417 bed student accommodation block in Whitchapel.
It has bought 60 Commercial Road and two nearby properties for £17m from previous owner, Derwent London.The 19 storey building, which already has planning consent is being designed by Buckley Grey Yeoman.
The joint venture has also acquired 122-126 Back Church Lane and will develop an office building of approximately 25,000 sq. ft. targeted at the TMT sector. Work is planned to start in April 2013, with completion in summer 2015 in time for the 2015/16 academic year.
Hafiz Ali, director at The Carlyle Group said: “60 Commercial Road brings our Pure Student Living portfolio in Central London to five properties and following the successful launch of our Pure Highbury scheme in 2012 means that we will have 2,150 operational beds by 2015. Commercial Road’s very central location is ideal for those studying in and around the City and complements our existing assets in north, south and west London. We believe that the fundamental imbalance in supply and demand for purpose built student housing in London presents an excellent opportunity and look forward to bringing this project forward and sourcing further investment opportunities.”
Alan Artus, director of Generation Estates added: “The acquisition of 60 Commercial Road is an important step towards our aim of developing a portfolio of 4,000-5,000 beds of high quality student accommodation in London and is a fantastic addition to our growing portfolio.”
The joint venture between The Carlyle Group and Generation Estates, Pure Student Living has completed its first development of 400 student beds at 201 Isledon Road which is adjacent to Finsbury Park Station.
The colourful building provides a mixture of en-suite study bedrooms and studios all with the benefit of generous amenity areas including games and study areas, a private gym and film screening room.
The transport connectivity from Finsbury Park is excellent providing a rapid connection to most London campuses and colleges. Just under 25% of the building has been reserved by University of The Arts London to accommodate first year students where as the remainder has attracted may students studying at UCL.
Alan Artus, Director Generation Estates said: “We are delighted to open Pure Student Living’s first residence and welcome our first students. We now have a development pipeline delivering another 1300 beds over the next two years and are actively seeking other well located sites.”
Finance for three of the properties has been provided by Barclays and Lloyds which will enable Pure Student Living to start the £37 million construction at the Pure Hammersmith site, the former Hammersmith Palais concert venue and nightclub, and its Pure City development on Goswell Road in Islington. Investec has also provided a loan facility for Pure Bankside, a £15m project on Ewer Street in Southwark.