Investec Structured Property Finance has completed a £47.5 mln (€65 mln) debt facility to fund the development by Saco of two new serviced apartment properties in London and Edinburgh.
Investec Structured Property Finance has completed a £47.5 mln (€65 mln) debt facility to fund the development by Saco of two new serviced apartment properties in London and Edinburgh.
The stretched senior debt facility will be provided over a 27-month term.
The largest of the developments comprises 168 apartments in London’s Aldgate district whilst the second site of 72 apartments is in George Street, Edinburgh. Both are scheduled to be delivered in 2016.
'Over the last 18 months, we have seen significant yield compression in alternative property sectors as experienced management teams, backed by very strong equity sponsors, replicate the developer/operator model that has been so successful in student accommodation,' said Mark Bladon at Investec SPF.
Simon Scott, chief development officer at Saco, added: 'It was clear from the outset that Investec’s detailed knowledge and understanding of the sector made them ideal partners for these developments.'
Saco, which earlier this year merged with Oaktree Capital Management’s serviced apartment platform, is a developer and operator of serviced apartments. It offers over 30,000 serviced apartments worldwide and has a pipeline of almost 1,000 new apartments in the UK and mainland Europe.
Investec Structured Property Finance provides a range of senior and stretched senior debt, and equity solutions to assist clients who are active in residential, mixed-use or commercial property acquisitions and developments. It has a mandate to lend more than £500 mln in 2015.
