Investec Structured Property Finance has provided a £47.7 million senior development and investment loan to finance a 527-bed student accommodation scheme in east London, Real Estate Capital can reveal.
The specialist bank and asset manager has provided the two-year facility to Curlew Student Trust, a joint venture that was launched in 2013 by CBRE Global Investment Partners and Curlew Capital, operated by London-based Curlew Alternative Asset Management, to invest in student property.
The loan will finance the Mannequin House student housing scheme on Blackhorse Road in Walthamstow. The facility will fund the scheme through to practical completion in July this year, as well as for a subsequent 18 month investment period. The scheme is due to open for the 2017/2018 academic year. Curlew initially forward funded the development.
Mark Bladon of Investec Structured Property Finance said that the student accommodation sector remains attractive as the UK faces an ongoing supply/demand imbalance for purpose-built student housing in certain sub-markets, including in London.
“This facility, which straddles both the development phase and an investment period, allows us to commit to the scheme as it becomes income generating and we look forward to working alongside one of the sector’s most successful and respected investors,” added Bladon.
“Student accommodation continues to deliver market-leading returns and Curlew is pleased to have arranged finance with a credible lender that is experienced in this sector and who we look forward to building a lasting relationship with during this project,” said Brett Robinson, director at Curlew Capital, the investment adviser to CST.