M&G backs City student scheme with £125m
M&G Investments has agreed to back a student-led scheme in the City of London.
Urbanest has secured a £125m financing facility with the investment manager.
The deal will support the development of more than 650 beds to be offered exclusively to students from King’s College London.
M&G Investments has agreed to back a student-led scheme in the City of London.
Urbanest has secured a £125m financing facility with the investment manager.
The deal will support the development of more than 650 beds to be offered exclusively to students from King’s College London.
M&G will fund the construction of Urbanest’s Aldgate scheme, to be known as UrbanestCity. It will also provide 60,000 sq ft of office space, along with an incubator space for entrepreneurial start-up businesses through a lease to King’s College Entrepreneurship Institute.
The building is scheduled to complete in 2021.
The £125m loan will mature in 2023 and will convert from a development to investment finance facility once construction is complete.
Vicky Skinner, chief financial officer at Urbanest, said: “This is Urbanest’s most ambitious student-led mixed-use development to date, providing a unique blend of student housing, heritage, entrepreneurial innovation, commerce and leisure space uses which will sit alongside and complement each other in the completed scheme.”
Adam Willis, associate director in M&G’s real estate finance team, said: “We continue to see increasing demand for student accommodation in the capital and this deal provides our institutional investors with access to attractive returns secured against high quality real estate in London’s city centre.”
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