Quintain Estates & Development has agreed a further £70m refinancing with M&G Investment for Quintain’s student housing provider, the iQ fund.
The London regeneration specialist and fund manager will use the facility for the new 673-bedroom iQ Shoreditch scheme that will open this summer, bringing the iQ portfolio to 5,183 rooms with a rent roll of £33m.
The new loan supplements the five-year, £115m M&G senior debt facility secured in March 2012 with which the new facility will be cross-collateralised.
On draw down in the summer the iQ fund will have total debt of £227.75m, including the £42.75m Deutsche Postbank funding also secured in March. The fund will have a loan-to-value ratio of 57% based on the December 2011 valuation, which Quintain expects to be broadly similar to that of March 2012.
The iQ fund, one of the UK’s largest student accommodation providers, is a 50-50 joint venture between Quintain and the Wellcome Trust.
Quintain’s finance director, Rebecca Worthington, said: “We are pleased to have successfully concluded a second deal with M&G on attractive terms in a very short timescale.
“This agreement concludes the financing of the current iQ portfolio, providing a very stable financial base from which to pursue further growth.”
bridget.oconnell@estatesgazette.com
