In the government’s first six months, the number of new homes built fell by 10%
Veld Capital acquires two Purpose Built Student Accommodation assets in Plymouth
Veld Capital (“Veld”), a leading asset-backed focused private investment firm, today announces that it has completed the acquisition of Saltwater Place and Mary Parker House, two high-quality, recently built Purpose Built Student Accommodation (“PBSA”) assets located in Plymouth, UK. The properties were acquired from Pickstock Group and Maple Grove Developments, who developed the assets, following two separate transactions.
The assets jointly offer 513 rooms and were fully let over the past three academic years. Saltwater Place is located next to the city centre in Plymouth with a variety of retail and leisure amenities available within a 15-minute walk to the main university campus and Plymouth train station. Mary Parker House is located within a 6-minute walk to the main university campus and an 8-minute walk to Plymouth train station.
Like many leading UK destinations for higher education, Plymouth has a chronically undersupplied PBSA market. With a student population in the region of 24,000 across three educational institutions, there are only ~6,000 PBSA beds available. Local supply-demand fundamentals are unlikely to change in the medium-term given that new PBSA supply is restricted by limited viable land availability coupled with high construction costs.
As a result, these investments offer exceptional value for Veld with a strong base of income generated from two well-performing PBSA assets that have been acquired significantly below replacement cost and with no short-term capital expenditure required.
Jon Silvosa, Investment Director at Veld, commented, ‘The high-income potential and exceptional value of these acquisitions proved to be particularly attractive to Veld, offering strong returns for core assets in an excellent location with very solid fundamentals associated. The high yielding nature of these investments in what has consistently proven to be a resilient asset class is something that we are actively looking to build upon as we pursue a number of other attractive opportunities in the UK PBSA market.’
Bank of England cuts base rate by 0.25%
Gareth Samples, CEO of The Property Franchise Group, (pictured) comments: “Today’s decision to cut the rate will be welcomed news for both mortgaged homeowners, as well as mortgage-dependent buyers who are looking to get their foot on the ladder.
‘While inflation remains elevated above the target, the Bank of England is focused on the long term and stimulating economic growth. Economic growth is expected to be slightly stronger over 2025 than it was in 2024. An improved economic outlook, coupled with falling interest rates will help improve sentiment in the market and should stimulate activity to some degree.
“Further interest rate falls are expected in 2025, which should result in improved affordability, enticing a broader range of potential buyers. A greater range of active buyers should help drive the modest uplift in prices that is anticipated this year.”
Commenting on today’s BoE interest rate drop providing some relief for borrowers, Daniel Austin, CEO and co-founder at ASK Partners, said: “The Bank of England’s decision to lower interest rates to 4.5% marks a pivotal moment for the UK real estate market. While this move may provide some relief for borrowers, the broader impact will depend on how quickly lenders adjust mortgage rates and how sustained the rate-cutting cycle becomes.
For homeowners and prospective buyers, lower rates should, in theory, make mortgages more affordable. However, the current market dynamics, where fixed mortgage rates have remained elevated despite previous signs of easing, suggest that any immediate impact may be muted. That said, a more stable rate environment could help restore buyer confidence, particularly among those who had been waiting for clarity before entering the market.
Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 200K followers & readers, he is the 'Proptech Realestate Influencer.'
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
