Reditum Capital have successfully completed the development of YOHO, a Purpose Built Student Accommodation (PBSA) building in Leicester. Reditum provided a bridge loan for the acquisition of the site in May 2017. In September 2017 Reditum purchased the site from the borrower, tweaked the planning and embarked on completing the ambitious task of developing the site in only 10 months.
The asset was a ground-up development of seven-storeys consisting of 134 self-contained studios. This was a huge undertaking and we successfully completed the scheme on time and on budget. We appointed Homes for Students to manage the scheme and they have achieved 100% occupancy at significantly higher rents than the transactions was underwritten at.
Situated on York Street, just a short distance from Leicester College, De Montfort University and the University of Leicester, the building is in an ideal location. It’s also close to amenities such as the railway station (approximately 550 yards away) and Leicester’s nightlife is within 5-10 minutes’ walking distance.
Each studio boasts a double bed, built-in wardrobes, full height mirrors and a flat screen TV, alongside a fully functioning kitchen. Every room has an en-suite bathroom with a shower cubicle, electric shower and heated towel radiator. There are also communal areas which include a study, TV room, vending machines, bike storage, laundry and Wi-Fi throughout. This offering is much more impressive than anything else currently available in the area.
The Leicester student accommodation market also has robust demand from rising student numbers and more significantly, overseas students. Leicester University in particular has a higher than average – (36% vs 25% for the rest of the UK) overseas student population who are looking for high quality accommodation demonstrating the demand for developments like YoHo. The building is managed by Homes for Students who have done a fantastic job in achieving 100% occupancy from the launch.
Leicester’s universities can currently only offer accommodation to 20% of full-time students while purpose-built accommodation offers bedrooms to just over 50%. This ratio of demand to supply of 2:1 still leaves almost 50% of students unable to access university or private sector purpose-built accommodation. Reditum Capital saw this as a great opportunity and the instant success of the scheme has proven the demand.
Reditum are now in the process of refinancing the asset and is expecting to repay investors ahead of schedule. YOHO adds to Reditum’s exposure in Leicester bringing the total to 211 beds along with the Zip building.
The official website can be viewed here: