Industrial and Commercial Bank of China has provided a £30 million loan to private equity real estate investor Henley to fund its purchase of a portfolio of student housing schemes.
The loan, which was arranged by CBRE Capital Advisors, funds the firm’s circa £50 million acquisition of six purpose-built student accommodation properties located in Sheffield, Stoke and Preston, comprising 1,519 student rooms.
The assets were purchased from Liberty Living. Henley is increasing its presence in the student accommodation sector, and owns a £25 million portfolio of student housing in Dundee and Salford through its Henley Ark platform.
“Student housing is the alternative sector that commands the most appetite from lenders and despite approaching the market in the aftermath of the referendum, willingness to lend was strong. An imbalance between supply and demand still exists in many university cities across the UK and as such, there is greater liquidity in the debt markets for this asset class,” said Lisa Attenborough, director at CBRE Capital Advisors.
“This acquisition builds on Henley’s track record since August 2016 within the student accommodation market, a space which continues to offer an attractive investment opportunity and favourable supply-demand dynamics,” added Ian Rickwood, chief executive officer of Henley.