F&C Commercial Property Trust has purchased the freehold of land at Burma Road, Winchester and entered into a development agreement with Osborne Developments to fund and develop student accommodation.

The development will consist of five blocks, comprising 499 bedrooms and will upon completion, be let to the University of Winchester for a term of 25 years. The total commitment including land purchase will involve £26.5 mln (EUR 30 mln) of capital expenditure and has been funded off an initial yield of 6.15%.

Richard Kirby, director of Property Funds at F&C REIT commented: 'This is a good opportunity for the company to gain income from exposure to a growing alternative sector and offers some inflation hedging that is supported by a long lease to a well established and successful university in a city supported by strong underlying residential values.'

Geoffrey Osborne was advised by Strutt & Parker. F&C REIT Asset Management and Knight Frank advised F&C Commercial Property Trust.