The Osborne Group
£8 million Investec loan to fund University of Essex student accommodation.
Investec Structured Property Finance (“Investec”) announces that it has agreed to provide The Osborne Group (“Osborne”), the established UK construction company, with an £8 million, 3-year loan, to fund the development of 135 purpose-built student accommodation (‘PBSA’) beds in Colchester, Essex. The loan also includes an investment term providing certainty for the borrower and helps reduce refinance costs.
The scheme, Elmstead Road, will serve the 15,000 student University of Essex and is adjacent to the main campus. Scheduled to open for the start of the 2020/21 academic year, it will cater primarily to second and third year students. 15 townhouses will deliver 123 beds, a mixture of studios and clusters, with an additional studio block containing a further 12 beds. The scheme also benefit from a common room, reception area, laundry and a bike store.
The University of Essex is one of the top ten fastest growing universities in the UK and 29% of the intake are international students.
Ian Burdett, at Investec Structured Property Finance, commented: “The supply demand imbalance facing University of Essex students means this high quality PBSA development should be well sought after by the underserved second and third year student population. The defensive characteristics of the PBSA sector, coupled with our successful track record and global relationships, has allowed us to continue to grow our loan book exposure to the asset class, having provided nearly £700 million of funding since 2015.
“We are pleased to be working with The Osborne Group for the first time, who are a well-established and respected property developer, and we hope it’s the start of a strong working relationship together.”
The Osborne Group are one of the UK’s leading, privately owned development and construction companies. Established over 50 years ago, the company has a turnover in excess of nearly £350m and employs more than 900 staff.
The Osborne Group, added: “Investec has a deep understanding of the student accommodation sector and has built a reputation as a market leading provider of development finance for schemes across the UK, which is why they were the obvious choice to work with on this project. We look forward to working with them again.”