Investec Structured Property Finance (“Investec SPF”) today announces that it has completed a €64.6 mln (£47.5 mln) debt facility to fund the development of two new serviced apartment properties by SACO The Serviced Apartment Company.
The largest of the developments comprises 168 apartments in London’s Aldgate whilst the second site of 72 apartments is in George Street, Edinburgh. Both are scheduled to be delivered in 2016. The stretched senior debt facility will be provided over a 27 month term.
SACO, which earlier this year merged with Oaktree Capital Management’s serviced apartment platform, is a highly regarded developer and operator of serviced apartments. It offers over 30,000 serviced apartments worldwide and has a current pipeline of almost 1,000 new apartments in multiple locations in the UK and mainland Europe.
Investec SPF provides a range of senior and stretched senior debt, and equity solutions to assist clients who are active in residential, mixed-use or commercial property acquisitions and developments, and has a mandate to lend more than €0.7 bln (£0.5 bln) in 2015.
Mark Bladon at Investec SPF said: “Over the last 18 months, we have seen significant yield compression in alternative property sectors as experienced management teams, backed by very strong equity sponsors, replicate the developer/operator model that has been so successful in student accommodation.
“We are firm believers that serviced apartments offer one of the most attractive investment propositions in the UK property market and investors are increasingly seeing the benefits of this asset class. We are delighted to have partnered with SACO on these developments and are excited to see the schemes delivered next year.”
Resource: Investec Structured Property Finance
