RM Funds completes GBP6m construction facility to IC Capital for Coventry student accommodation development


RM Funds has provided a GBP6 million development facility to IC Capital for the construction of a purpose-built student accommodation (PBSA) development in Coventry.

The prime 80-bed development, located in Coventry’s city centre and close to the Coventry University campus, is expected to be completed during Q4 2019.
 
IC Capital has extensive experience in PBSA having delivered the design and build for two forward-funded accommodation assets on behalf of Empiric Student Property PLC, a leading provider and operator of modern, direct-let, nominated or leased student accommodation located in prime city centre locations in top university towns and cities in the UK.
 
The loan was executed by RM Funds, the Investment Manager of RMDL.
 
Pietro Nicholls, Fund Manager, RM Funds, says: “Over the last seven years RM has developed a scalable credit platform to originate, structure and manage credit assets across a variety of industries and sectors. A key focus for us, as the Investment Manager to RMDL, has been to source and execute loans to well managed businesses and real estate in noncyclical sectors. Alternative real estate assets such as student accommodation typically offer a lower correlation and volatility profile to the wider commercial real estate market, in addition to generating attractive and stable income. RM Funds worked with IC Capital to provide a flexible financing solution which met the needs of the sponsor, developer and lead contractor.”
 
Preet Gandhi, Managing Director, IC Capital, says: “Coventry is a thriving university city with a large student population of over 55,000 and strong demand for high quality, well-located accommodation. The construction facility structured by RM Funds is a solution which worked for all parties, and we look forward to working with them on future schemes.”

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