Description
This Coventry student accommodation block presents an exceptional investment opportunity. Just steps from Coventry University’s main campus on Priory Street. Developed on the footprint of a former theatre.
The scheme comprises 65 fully self-contained studio apartments, each featuring en-suite facilities, kitchenette, study area, and high-speed internet. In addition, the block was built under a full planning permission (Policy H10 of Coventry Local Plan) and delivered to top specification. Secondly, in doing so, offering modern communal spaces, secure access, and on-site management.
Occupancy has remained at 100% since practical completion, generating a gross income of £589,900 per annum—equating to a gross yield of approximately 9.1%, outperforming the typical Coventry PBSA yield of 8.08%. This strong performance is underpinned by the building’s proximity to lecture theatres, libraries, and student amenities, as well as excellent transport links: Coventry Railway Station is a 10-minute walk away with direct services to Birmingham New Street (20 min) and London Euston (under 1 h). Local bus routes (X1, X18) and Coventry City Council’s cycle network further enhance accessibility.
For investors seeking immediate cash flow and future upside, the vendor—a retired developer—is highly motivated to divest. The sale via an SPV structure includes a £200k directors’ loan option, reducing net equity required and boosting investor IRR. A detailed valuation report is available on request upon signing the sourcing agreement.
Location & Connectivity
- Main campus, Coventry University: coventry.ac.uk
- Coventry Council planning portal: coventry.gov.uk/planning
- Rail: Coventry Station (Network Rail) – nationalrail.co.uk
- Bus routes: X1, X18, 14, 62
Opportunity & Potential
In conclusion, the building’s internal layout and future-proof design allow for conversion to clustered en-suites. Together with HMO licensing, or extension under permitted development rights. Finally, investors can explore adding co-working space or retail on lower levels to further diversify income streams.
Guide Price: £6,500,000 (Vendor motivated; open to >20% discount for swift exchange).
Key Takeaways:
• Prime 65-unit PBSA block fully let to students, generating £589,900 p.a.
• Gross yield ~9.1%, above Coventry average of 8.08%.
• Modern purpose-built scheme with full planning permission on ex-theatre site.
• Strategic location: adjacent to Coventry University main campus (10-minute walk).
Income & Investment Analysis
| Metric | Value |
|---|---|
| Purchase Price | £6,500,000 |
| Annual Gross Income | £589,900 |
| Gross Yield | ≈9.1% |
| Coventry Typical Yield | 8.08% |
| Price per Unit | £100,000 |
| Annual Income per Unit | £9,075 |
Net Yield Scenarios (30% operating costs)
| Discount | Net Yield (%) |
|---|---|
| 0% | 6.35 |
| 10% | 7.06 |
| 20% | 7.94 |
| 25% | 8.47 |
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|
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Figure: Yield comparison, net-yield scenarios and price-per-unit analysis |
Investor Recommendation:
Negotiate a minimum 20–25% discount to achieve net yields of 8–9% and ROI in excess of 13% (with 75% LTV financing).
Location
- Address: Priory Street, Coventry, CV1 5FB
- Rail: Coventry Station – direct to Birmingham & London
- Bus: X1, X18, 14, 62
- Uni: Coventry University main campus (10 min walk)
Media & Links
- 📄 https://www.palaceauctions.com/brochures/coventry-students.pdf”>Download Brochure (PDF)
- 🔗 palaceauctions.com/area-guides/coventry > Coventry Area Guide
Last updated: 07 September 2025
