Investec Bank Structured Property Finance has provided a £23.2 million loan to fund the development of a student accommodation block in Cardiff.
The development and investment loan has been made to McLaren Property and PMG Group to finance a 355 bed scheme close to Cardiff University called Fitzalan Court.
The stretch senior debt facility will fund the scheme through to completion, which is expected before the start of the 2017-2018 academic year.
McLaren is a UK-focused real estate developer and investor. PMG is a Cardiff-based property developer. The two firms formed a joint venture to acquire and develop the 70,000 square foot site at Fitzalan Court on Newport Road, Cardiff.
Full planning permission has been secured to turn the existing 1980s office campus, consisting of seven buildings, into 271 studio and 84 two-bed student bedrooms plus communal space and local amenities including a gym, cinema, games area and coffee bar.
“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,” said Graham Inglis, commercial director at McLaren Property.
“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,” said Mark Bladon at Investec Structured Property Finance.