Developer Dominvs Group has finalised the UK’s largest ever forward funding of student accommodation, a £173.25m deal with operator Scape for a 713-bed scheme in Hammersmith, W6.
Dominvs secured planning consent for two hotels at 181 Talgarth Road, one of which is a 400-room hotel for Premier Inn being delivered at the southern end of the site. However, the hospitality sector’s struggles during the pandemic mean the northern building will now be developed as PBSA. The combined scheme has a GDV of £270m.
Preet Ahluwalia, principal at Dominvs, described the transaction as “a milestone deal for the market”.
Knight Frank, which advised Dominvs on the deal, estimates the UK student market will rise to £72bn as students return to campuses post-pandemic. The agency said 21,000 beds are in the pipeline for delivery in time for the 2022-23 academic year. UCAS expects the number of international students to grow by two-thirds between 2022 and 2026.
Merelina Sykes, co-head of student property at Knight Frank, said: “This is a hugely significant transaction for the UK’s PBSA sector. As the largest forward funding deal to take place in the market to date, it not only demonstrates the real strength of UK student property, but also the need for developers and operators to meet growing demand for accommodation in the capital.”
Half of the student rooms at the Rogers Stirk Harbour + Partners-designed scheme will be allocated to students from Imperial College London’s White City campus, with others occupied by students from the London Academy of Music & Dramatic Art, the White City site of the Royal College of Art and West London College.
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