Investec provides £53.5m loan for student development

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  • 07/05/2019
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Investec provides £53.5m loan for student development
Investec Structured Property Finance will provide £53.5m for a joint venture between Scape UK and HG Construction to fund the development of 403 purpose built student accommodation (PBSA) bedrooms and 113 co-living units in Guildford.

 

The Scape Surrey 2 scheme will be the second of its kind in Guildford as the town tries to accommodate its growing student population.

The scheme will emphasise communal space for students to share and socialise with their immediate neighbours. Amenities will include a large break-out reception area, cinema room, open plan kitchen area, laundry rooms and outdoor area, with similar facilities for the co-Living tenants.

It is situated on the east border of the main University of Surrey campus and is scheduled to open for the 2020/21 academic year, with the co-living element following in 2021.

It will be the second Scape Surrey development in Guildford after the first, which is adjacent to the new scheme, achieved 100 per cent occupancy across its 141 beds since opening at the start of the 2016/17 academic year.

Guildford is home to almost 17,000 students across four educational establishments. In November, a market report on its student accommodation said there were only enough beds for 40 per cent of students. Applications to Surrey University increased 119 per cent between 2008 and 2017.

 

‘Blurred lines’

Shane Ryan, structured property finance originator at Investec, said: “We are aware of the limited supply of Grade-A student accommodation in Guildford, particularly studios, and are encouraged by the excellent performance of Scape Surrey 1.

“Increasingly we are seeing more innovative developers delivering a mix of tenure types within the same scheme, which reflects the blurred lines that now exist between the different use classes that encompass the private beds for rent sector.”

Adam Brockley, CEO at Scape UK, added: “Investec have been an absolute pleasure to work with being proactive throughout the process. They have demonstrated a deep understanding of the sector and a commitment to concluding the transaction that has been invaluable given the short timescale.”

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