Wednesday, 3 September 2014
M&G Investments provides €31 million of development finance for student accommodation at St Andrews University (UK)
M&G Investments (“M&G”), a leading international investment manager, is providing £25 million (€31 mln) of finance for the development of a 324 bed student residence for the University of St Andrews (“St Andrews”). St Andrews is working in partnership with Campus Living Villages (“CLV”) which will manage the development and then operate the accommodation on completion.
M&G has acquired a long leasehold interest in the property. On completion of the development, the Fife Park residence will be leased to the St Andrews/CLV partnership for 40 years, with annual reviews linked to inflation. The rent is guaranteed by St Andrews and it has an option to acquire the residence on expiry of the 40-year lease.
Ben Jones, Director of Real Estate Income, M&G Investments, says: “This transaction enables the development of state-of-the-art accommodation at Scotland’s first university, renowned for its teaching and research. It demonstrates the willingness of institutional investors to invest in the growing student accommodation sector – the variety of transactions M&G has recently undertaken confirms this can be done using a wide range of structures. We are pleased to continue our relationship with CLV and we have significant capital to invest in comparable projects.”
Sean McKeown, Commercial Director at Campus Living Villages, adds: “We are delighted to have been awarded the contract with the University of St Andrews. We are pleased to work with M&G Investments again on another project following the recent Royal College of Music and Bournemouth University deals.”
Source: Quill PR