Barings, one of the world’s largest diversified real estate investment managers, has provided a £140 million eight-year fixed rate loan, on behalf of two institutional investors, to the London Student Accommodation Venture (‘LSAV’), a joint venture between Unite Group (“Unite Students”) and GIC. The loan is secured against two London student accommodation properties, which are being acquired by LSAV from Unite Students for £342 million.
The properties are located in Wembley and Whitechapel and offer 1,358 bed spaces, of which the majority are directly let to students. The Wembley asset, Arch View House, was completed ahead of the 2020/21 academic year, while the Whitechapel property is less than ten years old and has an excellent trading history, with 98-100% occupancy achieved over the last four academic years, prior to the pandemic.
Unite Students will continue to manage and operate the two London properties under its management agreement with LSAV.
Both assets are of high quality with excellent amenities, communal areas and accessibility provision. They are well located in London and benefit from strong transport links.
This loan follows a £124 million facility provided by Barings to Unite Students in 2014 and was repaid in July 2020.
Source : Barings Real Estate