A joint venture between Bridges Ventures and Chancerygate has sold The Curve, a student accommodation development in London’s Aldgate, to LaSalle Investment Management for £60.3m reflecting a yield of 6%.

Bridges Sustainable Property Fund and Chancerygate jointly acquired the site south of Whitechapel High Street in 2010 to target growth in the area based on increasing student and investor demand in improving locations such as Zone 1 east London.

The scheme was development managed by Chancerygate and provides 350 direct-let student rooms and a 13,000 sq ft supermarket let to Tesco. As part of Bridges Ventures investment criteria, a number of environmental and sustainable initiatives were incorporated into the construction and have contributed to reduced operating costs.

The property is fully let to UK and overseas students seeking good quality accommodation close to Central London.

Simon Ringer, Head of Property Funds at Bridges Ventures, commented: “This investment typifies Bridges’ strategy of investing at an early stage in growth locations and niche sectors where property values are driven by rising occupational demand, improving infrastructure and growing institutional appetite.

“By working with a skilful development partner such as Chancerygate, we have taken a brown field site and created a high quality, sustainable development and operating business which has generated strong returns for our investors.”

Eddie Cook, Managing Director of Chancerygate, commented: “From the outset our strategy was to deliver a first-class income producing product for ultimate sale to an institutional investor. The yield achieved illustrates the strength of institutional interest in an asset of this quality. We are proud to have achieved this inside four years from start to finish and its success has provided an exceptional return on Chancerygate’s investment into the scheme and joint venture.

“This scheme demonstrates Chancerygate’s ability and skills set to develop and asset manage a significant development outside of its core activity.”

John Yeend, Director at LaSalle Investment Management, commented: “We are delighted to have secured this high quality student housing property in core Zone 1 London. We expect it to deliver consistent, attractive income returns with excellent prospects for capital growth.”

Knight Frank advised LaSalle, the vendor was not represented.

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For further information, please contact:

Bridges Ventures:

Claire Aslett    Capital MSL

+44 (0)20 3219 8825 / +44 (0)7983 921719

Chancerygate:

Duncan Lamb  DLM

+44 (0)20 7025 8750

 

NOTES TO EDITORS

About Bridges Ventures

Bridges Ventures LLP (“Bridges Ventures”) is a specialist fund manager dedicated to using an impact-driven investment approach to create superior returns for both investors and society at-large. Bridges Ventures has raised seven funds to date which total £340m: Sustainable Growth Funds I, II and III, the Bridges Sustainable Property Fund, the CarePlaces Fund, the Bridges Social Entrepreneurs Fund and the Bridges Social Impact Bond Fund.

The Bridges Sustainable Property Fund takes a thematic approach to property, investing entrepreneurially in buildings that promote regeneration, as well as those showing environmental leadership. The CarePlaces Fund focuses exclusively on building high-quality care homes for the elderly.

About Chancerygate

Chancerygate is a privately owned multi-disciplined property company. It is one of the leading industrial developers in the UK having constructed more than 60 million sq ft of industrial and commercial space for its own balance sheet and joint venture partners. In addition and through its asset management and investment division it has successfully undertaken more than £700 million worth of transactions and currently has approximately £200 million of assets under management. The company continues to maintain a track record of high quality development and realising value for investors.

About  LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager, with approximately $46.3 billion of assets under management of private and public property equity investments. LaSalle is active across a range of real estate capital and operating markets including private and public, debt and equity and our clients include public and private pension funds, insurance companies, governments, endowments and private individuals from across the globe.