St Modwen completes sale of Swansea Uni accommodation

St. Modwen on Friday said it had completed the sale of its leasehold interest in student accommodation at Swansea University Bay Campus for £87.3m to University Partnerships Programme.

The assets that have been sold comprise St. Modwen's interests in the completed student accommodation buildings, including ancillary commercial leases. The sale is by way of a disposal of the entire issued share capital of St. Modwen Properties VIII S.à.r.l. and St. Modwen (SAC 2) Limited and certain freehold interest, the company said.

The disposal follows a competitive sales process and was broadly in line with book value, St Modwen said. The gross consideration for the 45-year leasehold asset was £139.3m, representing a yield of 5.7%, with a cash consideration of £87.3m reflecting the transfer of the associated finance lease creditor.

The disposal will result in the reduction of £5.8m of net rental income compared to 2017, offset by the reduction of £2.1m in finance lease interest due to the sale.