Watson Burton law firm advised Manchester-based Mansion Group Limited, one of the UK’s leading players in the student accommodation market, on the acquisition of a 421 roomed hall of residence at St Andrew’s Gardens in Liverpool.

The scheme was the first purchase of the Mansion Group Student Accommodation Fund and represents a net initial yield of 7%. Mansion Group’s monthly dealing fund is listed on the Channel Island Stock Exchange.

Matthew Dalzell, property partner at Watson Burton said: "We have acted for Mansion Group since their very first property deal, and it is hugely rewarding to see the company’s continued success despite extremely demanding market conditions.

“This deal represents everything that Mansion is about, which is making deals happen even when the odds are against them and the market would otherwise dictate that they might not happen. We are delighted to act for a client with this mentality, and are very much looking forward to a busy 2010 growing the fund, and helping Mansion every step of the way in achieving their ambitious expansion plans."

Mansion Group’s student accommodation fund launched in December 2009 with an initial share price of 100p. Following the successful acquisition of St Andrew’s Gardens the fund net asset value jumped to 110p.

St Andrew’s Gardens is being fully refurbished for September 2010. It is managed by Mansion Property Management Limited, which currently manages eight sites across the UK totalling over 1,300 bedrooms.

Mark Stubbs, Mansion Group's Business Development Director said: "When we were first considering student accommodation, we were immediately struck by the investment potential. As an asset class it is probably best placed to endure the economic downturn affecting other property classes such as retail and commercial, largely because of the ever increasing numbers of students entering into higher education, both from at home and abroad.

"In the last year alone, student numbers have grown by 12%, creating and increasing accommodation demand which the market is struggling to supply. According to Savills Market Report, the UK market for private student accommodation was worth an estimated £6.6 billion in 2007 and was projected to grow to over £20 million by 2015."

The fund aims to acquire and manage a range of properties in the top 30 cities and towns by student population in the UK. It is currently looking at opportunities in London, Oxford and Glasgow.