Singapore’s sovereign wealth fund GIC has backed a £90m (€112 mln) whole loan facility for UK student accommodation provider Urbanest.

Singapore’s sovereign wealth fund GIC has backed a £90m (€112 mln) whole loan facility for UK student accommodation provider Urbanest.

The financing transaction was completed by Laxfield Capital, the specialist commercial mortgage investment manager for its €1.2 bn lending programme, which is backed by GIC.

The facility will be secured against Urbanest’s scheme in Hoxton, East London and its soon to be completed development on the Regent’s Canal, Urbanest St Pancras. The facility represents up to 70% loan to value across the two assets and is for a five-year term. The loan will be made available in two tranches; the first drawing immediately, with a second drawdown following the opening of the St Pancras scheme.

The 221-bed Urbanest Hoxton scheme, located on East Road just to the north of Old Street roundabout, was completed in 2010 and has delivered consistently strong occupancy levels since opening. The St Pancras scheme is to be delivered in time for the forthcoming academic year and will comprise 310 student accommodation beds and 40 residential apartments.

Urbanest was founded by Nick Porter in 2008 and is focused on the development, acquisition, ownership and operation of quality branded student accommodation in key cities within Australia and core ‘zone 1’ central London locations within the UK.

Adam Slater, managing director of Laxfield Capital, said: ‘Secured against two high quality central London assets, this is the third deal we have closed in the UK student accommodation sector this year, bringing the total debt we have originated in this asset class since the start of 2014 to in excess of £330 mln.’