Aberdeen Standard Investments on Tuesday looked to capitalise on an expected surge in UK student numbers, by buying freshers digs in west London for £22.6 million.
The fund manager has bought Fulham Palace Studios from property investor Sunley Holdings. The building has 74 student beds and shops on the ground floor.
The new owner will get annual rental income of £1.2 million, and there is scope to develop 12 more bedrooms.
Merelina Sykes, partner at Knight Frank which advised on the deal, said: “London remains a key investment target for most student accommodation buyers.”
Knight Frank has published new research that forecasts a 15% increase in full-time undergraduate numbers between now and 2030.
This would represent an increase of 220,000 students on top of existing numbers, and is calculated based on projected increases in the number of people about to turn 18, entry rates into higher education from UCAS, and more international students coming to the UK.
In London demand for digs outweighs supply.