Alternative asset manager Cheyne Capital Management has provided a £46.5m senior development loan to finance a large purpose-built student accommodation development in Brighton.
The funding has been provided to Student Roost for a 380-bed development on Moulsecoomb Way. The scheme, which will also provide 14,000 sq ft of commercial space, is being developed by McLaren Property and built by HG Construction. Student Roost will own and operate the development, to be known as Hillfort House.
Cheyne Real Estate’s Richard Howe said: “This is precisely the kind of investment that Cheyne likes to pursue. We seek to work with experienced sponsors with extensive track records, with whom we can build long-term partnerships – and that’s what we have with Student Roost. Moreover, we look to identify senior lending opportunities in value-add or development assets in attractive locations at defensive loan-to-values. Student accommodation is a sector that we think is very promising – particularly in places like Brighton where the supply of quality purpose-built student accommodation has not kept up with growing student demand.”
Stephen Rigby, chief investment officer at Student Roost, added: “We are pleased to reach this important milestone of our first investment in Brighton, Hillfort House. Despite the strong resilience of the PBSA sector and the continued strong reputation of UK universities, the disruption to higher education as a result of the pandemic has meant that the debt markets have been challenging to navigate over the last 12 months. However, Cheyne provided a really compelling structure for us on this deal which we are very happy to get over the line.”
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