Investec is pleased to announce that it has agreed to provide ca. €26.5 (£23.6m) financing facility to Curlew Student Trust, for the development of a 454-bed Grade-A scheme in Bournemouth, and an additional 2,000 ft² retail unit.
This is Investec’s second deal with Curlew, one of the UK’s largest investors in purpose built student accommodation. Backed by clients of CBRE Global Investment Partners, this deal further demonstrates the appetite from private equity investors for the attractive returns available from the sector.
Investec is providing the senior debt, which will fund the scheme through to practical completion in August this year, with a subsequent 18 month investment period. Located on Christchurch Road, which is just a short walk from both of the city’s higher education campuses, the development is scheduled to open for the start of the 2017/18 academic year. Leading contractor Watkin Jones is responsible for the development phase.
This latest transaction takes Investec’s exposure to Curlew to c. €80m (£71.3m), after closing a c. €53.6m (£47.7m) facility in April for the development of a 527-bed East London student accommodation scheme in April. Investec’s lending to real estate funds such as Curlew in the last three years now totals over €449.3m (£400m).
Mark Bladon, at Investec Structured Property Finance, commented: “Investor appetite for well-located student accommodation schemes in the UK shows little sign of abating, with the long-income profile of these operationally backed assets particularly attractive. Both of Bournemouth’s higher education institutions, which collectively total more than 23,000 students, continue to grow in reputation, a key factor in our decision to again partner with an experienced and trusted operator in Curlew to deliver this purpose-built scheme.”
Brett Robinson, Director at Curlew Capital, the Investment Adviser to Curlew Student Trust, added: “We continue to both identify and undertake student accommodation schemes of this nature, which offer market-leading returns and which we have the track record and resources to deliver on behalf of our investors. With a significant supply demand tension for high-quality accommodation, Bournemouth is an ideal fit with our investment strategy, as is partnering with one of the UK’s leading and most respected providers of development financing.”