Ground Rents Income fund offloads two student sites as it continues to liquidate portfolio

A British real estate investment trust has offloaded two student accommodation sites in Bristol and Exeter for a total of over £3m. 

London-listed Ground Rents Income Fund plc said today both assets currently generate annual rent of £113k and are operated by Vita Student (‘Vita’) as purpose-built student accommodation. 

A statement read: “Both assets were acquired from Vita in February 2014 for £2.42m and were part of a six asset headlease restructure that generated an apportioned receipt of £354k for the subject assets.”

“The disposal is in line with the company’s change of strategy, approved by shareholders in 2023, to realise assets in a controlled, orderly and timely manner.”

The firm said further disposals are planned, with significant work ongoing to improve the liquidity of its underlying portfolio. 

The news comes as an increasing number of students are struggling to find accommodation. 

A study by Savills last year showed there were around three students per available bed in purpose-built student accommodation. 

At the time, the estate agent said universities have had to take “extreme action” to combat the shortage.