The £90m facility for student housing provider Urbanest is for a term of five years. It reflects a 70% LTV across the two London assets it is secured by: Urbanest’s 221-bed Hoxton scheme near Old Street roundabout, and its soon to be completed 310-bed development on the Regent’s Canal, Urbanest St Pancras, which will also deliver 40 residential apartments.
Part of the whole loan will be syndicated in line with the programme’s strategy. GIC is expected to keep the top portion of the loan – 55-70% LTV.
The Laxfield Lending Programme has the capacity to write whole loans of up to £185m. Its loan for Urbanest will be made available in two tranches; the first drawing immediately, with a second drawdown following the opening of the St Pancras scheme.
This marks Laxfield’s third loan to the UK student housing sector this year, totalling more than £330m. Last month it arranged £122.8m of financing on MetLife’s behalf for Greystar’s acquisition of a portfolio of three student accommodation assets.
Alex Lanni, head of transactions, who worked on the financing said: “We like the asset class for the right sponsor, providing the right type of student housing. Urbanest has a very good track record and excellent relationships with universities. These assets are tailored to what students want, rather than being more ‘box driven’.”
GIC also understands this sector through its experience on the equity side.