LGIM Real Assets, acting on behalf of its LPI (Limited Price Inflation) Income Property Fund, has agreed to fund the development of a new high-quality student accommodation block which is pre-let to the University for the Creative Arts (UCA). The proposed new 252-bed student residence, located in the heart of UCA’s Farnham campus, has been purchased on a forward funding basis for around €27m (£23m). The property will be leased to the University on a new 35-year full repairing and insuring lease on completion of the development, which is scheduled for summer 2021. The development is being carried out by UCA.
Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, commented: “The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to University. We believe that quality facilities that are affordable for students can help to provide quality education. This is an excellent buy for the Fund, offering a secure long term income stream which provides a hedge to inflation from a good University.”