McLaren Property Holdings (“McLaren”), the UK focused real estate developer and investor, and PMG Group (“PMG”), the Welsh property developer, announce that they have secured development and investment finance for their 355 bed Cardiff University student accommodation scheme.
Investec Bank’s Structured Property Finance team (“Investec”) will provide the debt, as part of a €27.8m (£23.2m) stretch senior debt facility, which will fund the scheme through to completion, targeting the start of the 2017/18 academic year. This will be the fifth time the two companies have worked together and their second student accommodation project.
McLaren entered into a JV with PMG to acquire and develop the 6,503m² (70,000ft²) site at Fitzalan Court on Newport Road, Cardiff city centre. Full planning permission has been secured to turn the existing 1980s office campus, consisting of seven buildings, into a 271 studio and 84 two-bed cluster living space, complete with large communal space and local amenities.
The communal facilities will include a landscaped courtyard, a resident’s common room, gym, cinema, lounge, games area, coffee bar and study areas.
Graham Inglis, Commercial Director at McLaren Property, commented: “Student accommodation remains an attractive sector in which to invest. McLaren and PMG are pleased to have arranged finance with a lender that is experienced in this sector and look forward to working with Investec on this project.”
Mark Bladon at Investec Structured Property Finance, added: “We are pleased to be able to assist McLaren on this exciting project, delivering high-spec, innovative accommodation solutions in a leading university city. Student accommodation is one of the fastest growing use classes in the UK and one that the Investec Structured Property Finance team has a wealth of experience lending in. This will be our second student scheme with McLaren, who have established themselves as a market leader in this space, as well as being our third student deal in Cardiff and we look forward to helping deliver a successful project.”
The Fitzalan Court site is superbly positioned in close proximity to both Cardiff University and Cardiff Metropolitan University, as well as the city’s main shopping and leisure streets. There are a number of other student accommodation facilities in the vicinity, which is fast becoming the student quarter in Cardiff.
According to Knight Frank, there are 38,500 full time students in Cardiff, of which only 12,000 live in purpose built accommodation and only 2,400 of these are provided by the private sector.
