Investec writes £60.7m in PRS loans

Investec Structured Property Finance has provided £60.7 million (€66.5 million) for two private rented sector (PRS) schemes in the UK.

Investec Structured Property Finance has provided £60.7 million (€66.5 million) for two private rented sector (PRS) schemes in the UK.

The financing consists of two senior loans, which have been provided to Southdawn Limited – the development arm of PRS operator and developer Rooms & Studios.

The funding assists with the acquisition and development of two PRS schemes in the south of England, which will total around 400 units.

Investec has provided a two-year £43 million loan for the acquisition and first-phase development of a vacant 164,000-square-feet office block and adjoining 7.9 acres of land known as Kellogg Tower, in Sudbury.

Investec initially provided finance for the acquisition of the site in Q4 2015. The bank then provided construction finance for the first phase of the development, comprising 270 units and 100 car parking spaces, which started in May 2016. Works are due to complete by year end.

In Crawley, Investec has provided a 15-month £18 million facility for the acquisition and development of a vacant office property, totalling 43,600 square feet. The developer will build 129 residential units over four storeys and is also considering submitting a planning application for additional units. The works are expected to complete at the end of 2018.

“As the PRS starts to make a significant contribution to solving the housing shortage in London and the South East, we anticipate future opportunities to fund similar schemes,” said Hayley Scott, of Investec.

“Record institutional and private equity investment into this fast-growing sub-sector also highlights the potential steady returns on offer, in what remains an uncertain macro-landscape,” Scott added.

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