UK hotels and living sector real estate manager Dominus has secured £400m (€468m) worth of loans from Cheyne Capital Management’s UK arm.
Dominus said the two senior loans will provide development finance for two of its purpose-built student accommodation developments in the City of London.
The two loans, worth around £400m in total, will finance the Holborn scheme and the 65 Crutched Friars scheme, with a combined gross development value of around £800m, Dominus said.
The Holborn project will consist of 669 beds and the 65 Crutched Friars asset located between Aldgate and Tower Hill, will consist of just under 800 beds.
Preet Ahluwalia, principal director at Dominus, said: “Student accommodation is in very short supply across the UK, so completing these deals is a significant milestone that will facilitate the delivery of over 1,500 units in the heart of London. Importantly, 500 of said units will be available at affordable rents, enabling future generations from all backgrounds to benefit from them.
“These two assets form part of our pipeline of over 5,000 student units across key university towns in the UK, including Bristol, Manchester and Glasgow.”
Arron Taggart, head of UK investment at Cheyne Capital’s real estate division, said: “With the UK government’s commitment to enroll 600,000 international students by 2030, student accommodation continues to be a resilient asset class, and we see an ever-growing demand for high-quality, well-located student living options.
“That is why we are pleased to be partnering with Dominus to deliver two developments in the heart of central London which will not only provide a first-class experience for students but also stand to deliver benefits to the wider community.”
Shravan Joshi, chairman of the City of London Corporation’s planning and transport committee, said: “We’re delighted that the developers have been able to make such a generous contribution to the Square Mile’s cultural offer, providing a new home for the Migration Museum, in addition to the much-needed student accommodation and green space.
“These projects are examples of our Destination City vision in action, bringing us closer to our goal of transforming the Square Mile into a thriving and vibrant seven-day-a-week leisure destination for international and UK visitors, workers, and residents while also attracting world-class students and future talent.”
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