L&G to fund development of student accommodation
LGIM Real Assets (Legal & General) will fund the development of a student accommodation block which is pre-let to the University for the Creative Arts (UCA).
The proposed new 252 bed student residence, located in the heart of UCA’s Farnham campus, has been purchased on a forward funding basis for around £23m.
The property will be leased to the university on a new 35-year full repairing and insuring lease on completion of the development which is scheduled for summer 2021.
Derek Gilby, senior fund manager of the LPI Income Property Fund, said: “The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to University.
“We believe that quality facilities that are affordable for students can help to provide a quality education.
“This is an excellent buy for the fund, offering a secure long-term income stream which provides a hedge to inflation from a good University.”
The development is being carried out by UCA.
Avison Young acted for Legal & General on this deal and JLL acted for UCA.