Moorfield’s UK real estate fund to finance £42m Lincoln student housing project

Moorfield Group’s fifth value-add UK real estate fund is funding a £42m (€38.6m) student accommodation scheme in Lincoln.

The UK real estate fund manager’s Moorfield Real Estate Fund (MREF) V has entered into a development agreement with Melberry Developments for a 293-bed purpose-built student accommodation (PBSA) scheme in the East Midlands.

The deal marks Moorfield’s second development agreement with Melberry. In April last year, Moorfield via its MREF IV fund entered into a development agreement with Melberry for a 282-room University of Essex PBSA development in Colchester. The development known as Enso was completed in July.

It is also the second scheme to be delivered by the Zennor partnership, where Moorfield and Funding House provide de-risked funding opportunities in the living sectors. An agreement for the Apiary, an 81-home co-living scheme in Ealing, West London, was completed in February 2022.  

Charles Ferguson-Davie, CIO at Moorfield Group, said: “We have been investing in student housing for over 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.”

David Sarson, managing director at Melberry Development Management, said: “We are delighted to have secured this second scheme with Moorfield Group building on the success of Enso, which has received widespread acclaim and is one of the region’s most sustainable PBSA schemes.

“Our collaborative work has proved a winning formula in the delivery of high-quality products aligned with market needs and requirements.”

Tim Attlee, founder of Funding House, said: “This scheme promises to be another exemplary project from Moorfield and Melberry, and we are pleased to have completed our second transaction in the Zennor partnership.

“The joint venture has been designed to provide funding solutions to leading residential development partners, enabling the delivery of best-in-class assets in a sector that is central to institutional investment portfolios.”

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