International property fund manager Cordea Savills has completed the sale of two assets on behalf of its Student Hall Fund and has bought a new prime project in Edinburgh.

The purchase comprises the buildings and site of a brewery in Sugar House Close, Edinburgh for an initial payment of £8 mln (EUR 9 mln). The site will be redeveloped in conjunction with Watkin Jones to create fully-managed student accommodation which can also be used as an apart-hotel outside term time. The company anticipates the asset will deliver a net yield of 6.5% from August 2012.

At the same time, the company has told student halls of residence in Birmingham (£11.5 mln) and Bangor (£16 mln) to Knightsbridge Student Housing, a new student accommodation investment company backed by Oaktree Capital Management.

Patrick Carr, fund director of the Cordea Savills Student Hall Fund, commented: 'The sale of the two halls has provided us with a strategic opportunity to rebalance our portfolio towards Russell Group universities (the top 20 research-focused universities) and capital cities, which we believe offer very strong rental growth prospects.'

The Student Hall Fund, which has an annual target return of 10% over the life of the fund, was launched in 2006 and is a closed-ended Jersey property unit trust.

Lawson and Partners acted as agent for Cordea Savills on both of the disposals, whilst Pinsent Masons LLP acted as legal adviser for Cordea Savills on both the sales and acquisition. Watkin Jones will be the Fund’s development partner. Practical completion is scheduled for August 2012.