Investec Real Estate has provided Moorfield Group with a £15.6m facility to fund the development of a 293-bed purpose-built student accommodation campus in Lincoln.
The development is already under construction and due to complete ahead of the 2024/25 academic year.
It comprises four three-storey townhouses and five four-storey buildings.
This is Investec’s second student deal with Moorfield, having previously provided a £19m loan for the development of a 282-bed PBSA scheme in Colchester, Essex.
Jonathan Long, head of corporate lending at Investec Real Estate, said: “With UCAS expecting to receive 1m applications annually by 2030, we remain bullish on the student accommodation sector’s compelling long-term outlook.
“It has an attractive, inflation-protected income profile supported by deep-rooted demographic tailwinds. Our 13-year track record providing a mix of domestic and international capital with a range of funding solutions means we are well placed to capitalise on the continued demand for new development.”
Charles Ferguson Davie, chief investment officer at Moorfield Group, added: “We have been investing in student housing for more than 20 years and investor confidence in the sector remains resilient, with domestic and international investors keen to increase their exposure to an undersupplied asset class offering risk-adjusted returns and long-term income streams.
“We see a market opportunity in new-build development and refurbishment of existing stock, with both strategies responding to investor demand for high-quality assets with leading ESG credentials.”
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