Legal & General to fund student accommodation development
Legal & General has agreed to fund the development of new high-quality student accommodation block to a top Scottish university.
Lincam Pentland Ltd, a subsidiary of Edinburgh housebuilder S1 Developments Limited, has completed the sale of the proposed new 315 room (359 bed) student residence, formerly known as Pentland House, on a forward funding basis for a purchase price of around £35 million.
The property will be leased to the University on a new 20-year full repairing and insuring lease on completion of the development, which is scheduled for September 2020.
The development is being carried out by S1 Developments.
Legal & General made the announcement on behalf of its LPI (Limited Price Inflation) Income Property Fund.
Derek Gilby, senior fund manager of the LPI Income Property Fund, said: “The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to university. We believe that quality facilities that are affordable for students can help to provide a quality education. This is an excellent buy for the fund, offering a secure long term income stream which provides a hedge to inflation from a top investment grade university.”
Dan Teague of S1 added: “We are delighted to have concluded this transaction with Legal & General who are a perfect partner for ourselves. We will be providing exceptional accommodation for the university in time for the 2020/21 academic year.”