After spending my placement year in the Retail and Leisure Team at FHP in 2019, I graduated from Sheffield Hallam University with a 2:1 BSc (Hons) in Real Estate with my Dissertation focused on whether the Nottingham student accommodation market was going to become over supplied. After graduating I did a Ski season in Canada to become an instructor and then spent a year in the Student Lettings and Management Team at FHP Student Living. I also gained experience at Sladen Estates in their development department.

FHP and Sister brand FHP Student Living have completed 2 Portfolio sales of HMO properties in Nottingham.

David Hargreaves founding Director of FHP and FHP Living said:

“Demand for HMOs from students continues to remain good thanks in part to 2 very strong Universities with rents continuing to rise.  However with significant increases in Interest Rates as well as Utility costs and increasing Compliance and Licensing requirements we are starting to see a “changing of the guard” in terms of ownership.

Many owners of Student HMO’s have owned for 20-30 years and are now getting to an age where the constant changes and demands on them are resulting in them looking for an exit.

At the same time we are seeing an increasing number of large Prop Co’s and Institutionally backed Companies buying in to the sector as they build substantial National Portfolios of several thousand beds focused on the key University cities.”

Jonty Green who heads the Investment side of the FHP Student Living business said:

“Our 2 recent Portfolio Sales fall under such a scenario and the links FHP have with the large Prop Co’s and Institutions through their overall Investment work together with our deep local knowledge has put us in a strong position to help our clients achieve their aims.”

Greg Fieldhouse of FHP Student Living said:

“The first portfolio of 5 Houses and 26 beds in the prime LENTON area achieved a price of just over £2,000,000 with Massers advising on the legals.”

Jonty Green confirmed that:

“The second portfolio of 22 properties and 112 beds also in LENTON achieved a price of just over £8,000,000 with Helene Maillet-Vioud of Geldards leading on the legals.”

He went on to say:

“There is a massive amount of work involved in pulling together all the information required by an Institutional type buyer which takes a lot of time, but Geldards did a great job on this larger sale in getting it over the line.

These 2 Transactions show that despite a difficult market with a willing and committed vendor and the right professional advice there is still an opportunity for deals to be struck with active investors.”

David Hargreaves concluded:

“We expect to see more of these transactions over the next 12 months and the knowledge gained from these 2 sales put us in a prime spot to be able to advise potential vendors.”

FHP and FHP Living worked together on both sales, with Massers and Geldards acting on the legals.

ENDS

David Hargreaves

10^th October 2023

FHP Property Consultants acting on behalf of Cassidy Group have advised on the letting of 229 student bedrooms at DAGFA House in Beeston, next to Broadgate Park, to The University of Nottingham.

David Hargreaves, who structured the deal on behalf of Cassidy said:  “FHP originally acquired this former school site in Beeston for clients 4 years ago and subsequently sold the site on with the benefit of planning permission to Cassidy Group.

Construction was by J Tomlinson which included the refurbishment of the Grade 2 listed old school house in to Studios and communal facilities overlooking a mature garden with the rest new build.

In year 2019/20 the 229 beds were fully let on a direct let basis, but from September this year FHP were able to put in place a straight 10 year lease with annual rent increases to RPI to The University of Nottingham off a rent of £1,327,000 per annum.

Hargreaves said that by putting in place a 10 year unbroken lease to Russell Group University with annual rent increases the yield profile improved significantly with the created Investment being sold for a little over £27million showing the purchaser a net initial yield of circa 4.75%.

FHP Property Consultants acted for Cassidy Group throughout, with Savills’ London office representing the University. Legal advisers were Felton Dunsmore and Freeths.

Cassidy Group have 2 further student schemes in Nottingham – York House on Mansfield Road, which FHP sold to Cassidy Group on behalf of Intu Plc and which won the Bricks “Deal of the Year 2020” for the East Midlands, which will provide 470 beds and is forward funded to Student Roost; and Deakins Place where construction of a further 703 beds is about to begin with Bowmer & Kirkland the appointed contractor.

End

FHP and FHP Student Living, acting on behalf of Intu Plc, have completed the sale of the site of the former York House building which previously had been home to the BBC and Trent Polytechnic.

The site, which fronts Mansfield Road and is opposite the Victoria Centre Bus Station, totals 0.55 acres and has been sold to Cassidy Group / Investin Plc for in excess of £8million.

David Hargreaves of FHP who led on the sale said:

“Alan Pearson and I went out to 10 developers on a targeted and Confidential Sales basis and secured 10 bids for our clients, Intu Plc, for the site which was surplus to their needs.

We had several unconditional bids in terms of planning, but after a third round of bids chose a Subject to Planning Offer from Cassidy Group and Investin Plc, partly on price but partly due to their track record in Nottingham of progressing planning quickly and maximising site densities. Investin Plc had developed and sold the Hydrogen Student scheme, whilst Cassidy had developed DAGFA House Student scheme and the 350 Apartment PRS scheme Saffron Court.

Through Maber Architects, Planning Permission was secured for 422 Student Bedrooms, subsequently revised to 472 Beds, delivering for our client a price more than double their expectations.”

Construction has now started on site through local contractor NMCN of Huthwaite, with completion due Summer 2021 ready for the 2021/22 Academic Year.

End
8 November 2019