RedOak Property has agreed a €24.5m (£21.5m) senior loan facility for its 330-bed purpose-built student accommodation development ‘Sandhills’ in Nottingham. Global real estate investment manager DWS and NatWest Markets have refinanced an existing senior loan at 65% LTV. Located on Talbot Street in Nottingham City Centre near to Nottingham Trent University, the property is currently secured by a long-term lease to Unipol Student Homes for all 330 bedrooms.
Established in 2014, RedOak Property is a real estate fund focused on residential and student accommodation in regional centres. It develops, retains, and manages a portfolio of residential assets in the UK market. Sandhills is anchoring the launch of a new student property fund, Student Fund 1, to invest in purpose-built student accommodation properties near to established universities across the UK.
Guy Norman, director at RedOak Property, commented: “This refinance fits with our business strategy of retaining the asset in the long-term and reflects our commitment to the purpose-built student accommodation market. This transaction demonstrates the resilience of the sector, and the strong fundamentals of this asset in providing high quality and affordable purpose-built accommodation close to Nottingham Trent University campus. In what has been a challenging year, our new relationship with DWS and NatWest is a positive sign of the long-term confidence in the student accommodation market by institutional lenders.”
Alexander Oswatitsch, Head of European Real Estate Debt at DWS, commented: “We are very pleased to have closed on this transaction. It is a great example of how the affordable end of student housing has shown resilience during COVID. We look forward to further establishing our relationship with RedOak Property.”