Dominus has secured two senior loans totalling £400m from Cheyne Capital Management to provide development finance for two purpose-built student accommodation developments in the City of London.
The first facility will support a 669-bedroom development at 61-65 Holborn Viaduct, EC1, with the second facility enabling the development of 65 Crutched Friars, EC3, into a 780-bed student scheme.
Both developments will provide 35% affordable student beds and provide space for community projects. At Holborn Viaduct, this includes affordable workspace to be leased free of charge by the Creative Land Trust and at Crutched Friars a new 30,000 sq ft long-term home for the Migration Museum will be provided.
The schemes, which have a combined GDV of around £800m, will be developed and operated by Dominus.
Both properties have designed to be low energy in operation. 65 Crutched Friars is targeting BREEAM Outstanding, with the Holborn scheme targeting BREEAM Excellent.
Dominus’ Preet Ahluwalia said: “Student accommodation is in very short supply across the UK, so completing these deals is a significant milestone that will facilitate the delivery of over 1,500 units in the heart of London. Importantly, 500 of said units will be available at affordable rents, enabling future generations from all backgrounds to benefit from them.
He added: “These two assets form part of our pipeline of over 5,000 student units across key university towns in the UK, including Bristol, Manchester and Glasgow. Drawing on a decade of experience in creating hotels that locals and our guests love, we will create an innovative and inclusive experience for students which we hope will maximise their progression as they move through their careers.”
Image: 61-65-Holborn-Viaduct, courtesy of ING Media
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