OCTOPUS PROPERTY BACKS 502-BED STUDENT ACCOMMODATION - Think Recruitment

OCTOPUS PROPERTY BACKS 502-BED STUDENT ACCOMMODATION

Posted: February 8, 2019

Octopus Property is funding a 502-bed student accommodation project in Coventry which is set to be ready by the start of the new academic year.

Part of the Octopus Group, Octopus Property provided EREC Estates a £36m loan for the scheme which will comprise of two buildings.

The loan is the largest single development deal completed by the Octopus Property team.

When completed, the scheme will be located adjacent to the city ring road, in Parkside, and a short walk from the main Coventry University campus.

The 27-month facility marks the third collaboration between Octopus Property and EREC Estates, following two smaller PBSA developments in Leicester and Coventry.

Gavin Eustace, head of residential development at Octopus Property, said: “Whilst we are seeing some geographical polarisation caused by oversupply, the student accommodation sector remains one of the most attractive asset classes for investors.

“It’s a sector that we like, and as long as the broader favourable supply demand dynamics remain in place for this type of innovative and high specification accommodation, we will continue to back schemes that require bespoke and efficient financing facilities.

“Starting 2019 with our largest ever development facility is a significant milestone for the team and demonstrates our evolving maturity and ability to compete with major institutional lenders.

“Growing the development loan book is a key priority moving forward and working alongside our key partners should see us doing similar sized deals more regularly.”

Andrew Jamieson at EREC Estates added: “We are extremely pleased to be working with Octopus on behalf of UNINN Investment Fund.

“This is the fourth property that UNINN has developed and owned in Coventry and underscores our belief in the potential of its Universities to continue to deliver a product that is respected internationally.

“We understand that the West Midlands has an ability to deliver returns to students and investors alike.”

Winvic Construction is the main contractor on the development.

John Kerrigan, a director of Arc & Co, advised EREC Estates on the debt structure.

He said: “The completion of the Parkside transaction is a real milestone for all those involved and is the culmination of 12 months of hard work, on what has been a very complex deal, both from a real estate and funding perspective.

“However, the underlying proposition was extremely strong and supported by a very high calibre sponsor and funder, both of whom were a pleasure to work with.”

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