Legal & General Investment Management Real Assets has agreed to forward-fund a student accommodation scheme, at the University for the Creative Arts’ campus in Farnham.
The proposed 252-bed student residence was bought on a forward-funding basis for around £23m, on behalf of its Limited Price Inflation Income Property Fund.
UCA is carrying out the development. The property is 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 LPIIP 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.”
Avison Young acted for LGIM on the deal, while JLL acted for UCA.
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