Knight Frank Brings 450-Bed Student Housing Scheme in Brighton to Market

Key Highlights:

– Knight Frank brings 450-bed PBSA scheme at 5 Circus Street, Brighton to market on behalf of Scape Living
– Scape Living is backed by Dutch pension fund APG
– Knight Frank guiding offers in excess of £67 million for the long leasehold interest
– The scheme is fully let to Kaplan Brighton Ltd until September 2040
– Includes 81 studios, 366 ensuite rooms, 3 one-bed flats and 1,130 sq ft of retail space
– Located just a 2-minute walk from University of Brighton city centre campus
– Brighton has a very high student population, with students making up 11.7% of total population
– Despite high demand, PBSA only caters to 34% of Brighton’s full-time students currently
– The scheme offers an excellent opportunity for investors due to undersupply in Brighton’s PBSA market

News in detail:

Knight Frank Brings 450-Bed Student Housing Scheme in Brighton to Market

Global property consultancy Knight Frank has brought a purpose-built student accommodation (PBSA) scheme at 5 Circus Street in Brighton to the market. The property firm is guiding offers of over £67 million for the long leasehold interest in the development, which is fully occupied by students.

The scheme was developed by Scape Living, which is backed by Dutch pension fund APG. Located in the heart of Brighton, just a 2-minute walk from the University of Brighton’s city centre campus, the development includes:

– 450 student beds 

– Breakdown of the property: 

   – 81 studios  

   – 366 en-suite rooms

   – 3 one-bedroom flats

– 1,130 square feet of retail space occupied by White Cloud Coffee Roasters

The accommodation is currently fully let and occupied for the 2023/24 academic year to Kaplan Brighton Ltd under a lease running until September 2040.  

Despite high demand, PBSA accommodation currently caters to just 34% of Brighton’s full-time university students. This is because students make up a sizable 11.7% of Brighton’s total population. 

According to Knight Frank’s Merelina Sykes: _”Brighton has one of the highest student ratios of all university towns and cities across the UK…As a result, schemes like this one offer an excellent opportunity for investors, and we expect to see strong interest following the launch.”_

The scheme offers investors an opportunity to capitalize on the supply-demand imbalance in Brighton’s purpose-built student housing market. With stable occupancy secured by long-term leases, Knight Frank expects significant investor appetite for the asset.