The loan has been advanced to Scape, a global student accommodation provider, and will allow the firm to refurbish the Thanet Street property to deliver 60 self-contained studio units.
Investec has provided Scape and it partners with over £150m of senior debt funding, to date, across five schemes.
Since the start of 2015, Investec has originated £677m of funding in the purpose built student accommodation (PBSA) sector to a range of UK and global institutions, financing more than 16,000 beds across 23 university cities.
Shane Ryan, at Investec Structured Property Finance, said: “This is a high quality development in a prime London location, which is well placed to further meet the demands of London’s student population. Despite short-term uncertainty affecting the sector, the city’s enduring international appeal and challenging planning restrictions continue to underpin favourable supply-demand dynamics.
“We remain steadfast in our conviction that the PBSA sector will continue to be a sought after asset class by both UK and global investors, attracted by its long income characteristics and attractive pricing. Having forged an extremely close relationship with Scape, we look forward to working with them on future schemes.”
The development is centrally located in Bloomsbury and will be within walking distance of several leading universities, including the University of London, Birbeck University and SOAS.
Scape is one of the largest developers and operators of PBSA globally with over 30,000 beds in operation and development across the UK, Australia and the USA.