Knight Frank has advised Knight Frank Investment Management (KFIM) on their acquisition of a staff accommodation portfolio located in the West Sussex seaside town of Bognor Regis, for £11.2 million.
The portfolio consists of seven buildings and is wholly let for an unexpired term of 23.56 years to Butlins Skyline Limited, who also manage the properties. Occupying a one-acre site, the accommodation provides 151 bed spaces across a mix of single, twin and double rooms together with communal areas and management accommodation, offering affordable staff accommodation for workers at the nearby Butlin’s Bognor Regis Resort.
The freehold portfolio generates a total passing rent of £605,360 per annum and is subject to five yearly RPI plus 2% linked rent reviews.
Hector Ahern, Knight Frank Specialist Property Investment said, “This portfolio provides staff accommodation critical to the successful operation of the Butlin’s Holiday Resort whilst also offering long-term index linked rental income from a secure tenant. There was also a strong underwrite based on long-term, redevelopment opportunities.
“Bognor Regis is expected to see increasing numbers of residents and visitors given the regeneration in the area, town centre BID and strong links with the University of Chichester, as well as the trend towards the rise of the staycation and the investment in Butlins Bognor Regis.”
Knight Frank advised KFIM on the acquisition and Allsop advised the vendor.