Unprecedented demand from investors for luxury student apartments in Exeter city centre has led to a new £17m scheme selling out in just seven weeks.
All 161 apartments in Vita Student's Portland House development on Longbrook Street scheme have been purchased off-plan by UK and overseas investors.
Work has also started on site by main contractor Create Construction, with the project due to be completed in time for the 2014/15 student intake.
Exeter was chosen as the location for Vita Student's latest luxury student scheme due to the academic reputation of the university and increasing student population, which has been boosted by an influx of overseas students.
Chief operating officer of Vita Ventures, Mark Oakes, said: "Exeter was chosen as a location for a Vita Student project due to the severe undersupply of suitable accommodation in the city. The academic excellence of the university means that the city is very attractive to investors because the student population will continue to grow, further increasing the need for accommodation.
"The speed at which our development has sold proves that our investment model is successfully catering for the market demand for student property."
Investment opportunities in the student property market have been increasingly sought after in recent years. Global property consultancy Knight Frank's 2014 report on the sector shows that total returns from student accommodation have outperformed all other property asset classes since 2011. The report also predicts this trend will continue well into next year thanks to a maturing market and increasing student demand.
Vita Student said investors were attracted by the guaranteed seven per cent rental yield for five years and the central location and premium specification of the project.
One of the investors in the scheme, Jeff Elder, said: "After examining the company and the student property sector I realised that the yields that can be achieved are stronger than any other property group – and indeed any savings group at the moment.
"Vita Student's luxury proposition stacked up well with my market research and the assured seven per cent rental return for five years also put my mind at rest that my money would be working hard for me."
