Investec Structured Property Finance is pleased to announce that it has agreed to provide a 24 month, €55.7m (£47.7m) financing facility to Curlew Student Trust, one of the UK’s largest investors in purpose built student accommodation, for the development of a 527-bed Grade-A scheme in Walthamstow.
Investec will provide the senior debt which will fund the scheme through to practical completion in July this year, as well as for a subsequent 18 month investment period. Mannequin House on Blackhorse Road will open for the 2017/18 academic year, with Curlew forward funding the scheme and leading contractor Watkin Jones responsible for the development phase, with whom Investec has worked extensively in the past.
Mannequin House is located on Blackhorse Road, adjacent to both Blackhorse Road underground and overground stations, providing students with access to both the West End and the City in just 20 minutes.
According to recent data, London has 376,000 students, of which 278,000 are full time. This equates to 4.19 students per purpose built bedspace with 82,000 students in the target market without access to PBSA.
Brett Robinson, Director at Curlew Capital, the Investment Adviser to CST, added: “Student accommodation continues to deliver market leading returns and Curlew is pleased to have arranged finance with a credible lender that is experienced in this sector and who we look forward to building a lasting relationship with during this project. Development of the scheme is ahead of schedule with the marketing suite open for potential tenants to view. We are seeing good interest from universities keen to secure what we believe will be an exemplar scheme for their students.”
Mark Bladon at Investec Structured Property Finance commented: “The student accommodation sector remains one of the most attractive asset classes for investors, as the UK faces an ongoing supply demand imbalance in certain sub-markets. London in particular, where we are building a track record of providing bespoke debt facilities for leading developers, on competitive terms, will continue to see a requirement for brand-new purpose built space, as the global leader in the provision of quality higher-education. This facility, which straddles both the development phase and an investment period, allows us to commit to the scheme as it becomes income generating and we look forward to working alongside one of the sector’s most successful and respected investors.”