Investor Blacklight Capital Partners took on and completed the stalled Limelight student living scheme in Liverpool and is now looking to sell the development for more than £61m. Tony McDonough reports
Blacklight Capital Partners is seeking offers in excess of £61m for the Limelight student living scheme in Liverpool which has 535 bed spaces.
Located off Norton Street, this development was originally known as Natex. It stalled in 2021 after being topped out by original developer Mount Property Group in early 2021. Blacklight took control in August 2022 and refinanced with Allied Irish Bank.
Its asking price for the project, which comprises two blocks of 10 and 16 storeys, would represent an net initial yield (annual rental income as a percentage of capital value) of 5.75%. Blacklight has appointed Savills to find a buyer.
Totalling 162,654 sq ft, Limelight consists of 79% clusters and 21% studios. It has amenities including a sky lounge with panoramic city views, cinema and karaoke rooms, a fully equipped gym, study zones, social lounges and private gated gardens.
It is a four-minute walk from Liverpool Lime Street station and roughly equidistant between the two largest universities in the city – the University of Liverpool and Liverpool John Moores University.
Since opening in September 2024 it has seen strong demand and runs at 99% occupancy. Pre-letting momentum also remains strong, with 61% of beds pre-let for the upcoming 2025/26 academic year.
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Jamie Radcliffe, associate director, Savills operational capital markets, said: “Liverpool continues to attract exceptional applicant demand, with rising domestic and international acceptances outpacing many other regional cities.
“Liverpool’s purpose-built student accommodation market presents a compelling investment opportunity, with demand consistently outpacing limited supply and exceptionally few viable schemes progressing through the development pipeline.”
Limelight is the second PBSA scheme that Blacklight has developed in the city, with its first, the 999-bed Aura, being sold in 2022 to Tristan Capital Partners for £110m. A third scheme, also in the Knowledge Quarter, is currently being progressed by the company.