Charities property fund

Savills Investment Management, the international real estate investment manager, on behalf of the Charities Property Fund (CPF) has acquired a newly developed school boarding house located in Summertown, Oxford.

The purpose-built development was completed in September and is let to private school D’Overbroecks on a new 30 year lease subject to RPI indexation realised every three years. 

The property is prominently located on Banbury Road immediately opposite D’Overbroecks’ new school building in Summertown, to the north of the city centre, and was purchased for £8,150,000, reflecting a NIY of 4.80%. 376 Estates Ltd was the vendor.

Angy Benitz, Portfolio Manager for CPF, commented: “This is a state-of-the-art development in a city with an acute shortage of land supply, a restrictive planning regime and an abundance of tenant demand generated from a world-famous university. We are delighted to have secured this asset by partnering with a local developer with an excellent track record.”

“This purchase illustrates our strategy of acquiring properties in supply constrained locations that provide robust and growing income with a valuable residual land position, alternative uses and high vacant possession values. We have deliberately built up significant holdings in prime locations, and now have 40% of the portfolio located in Oxford, Cambridge, Bath, Harrogate and London.”

Paul Abson, Director of 376 Estates, stated: “My team are extremely proud of having delivered such a high-quality building in Oxford and I am delighted that our development has been recognised as such by CPF. It has been a pleasure working with CPF to deliver a seamless transaction."