LaSalle Investment Management funds The Quadrant, Stockwell, London
By Bridging Loan Directory -
LaSalle Investment Management has completed on a deal to purchase and fund the construction of Watkin Jones’s 328 student bedroom development known as The Quadrant according to Property Funds World.
LaSalle is buying the scheme for GBP32 million on behalf of an institutional client. The purchase price reflects a net initial yield of 6.27%.
The scheme, designed by TP Bennett, will total 258 en-suite cluster bedrooms and 70 studio units along with approximately 17,000 square feet of commercial space.
The University of the Arts, London has taken a 21 year lease with a break at year 15 across all the en-suite cluster bedrooms, whilst the remaining studios will be leased to Watkin Jones on similar terms. The student accommodation will be managed by Fresh Student Living. ACME has taken a lease on an element of the commercial space which will provide affordable studios for fine artists. The net income for the property will be GBP2,138,242 per annum and will be subject to fixed annual uplifts at 2.50%.
Construction has started on site and the scheme is due to be delivered for the start of the 2013/14 academic year.
The transaction follows recent student investments by LaSalle in Cambridge and Newcastle.
John Yeend, Director of LaSalle Investment Management, says: “This funding demonstrates our interest in the student sector, which can provide a secure, predictable income stream for our investors and is underpinned by strong occupier demand and a shortage of quality new accommodation. It also shows our ability to enter into complex funding agreements to provide capital to finance developments.”
Jones Lang LaSalle advised Watkin Jones, while Lawson & Partners represented LaSalle.