L&G secures student blocks at University of the Creative Arts in Farnham
LGIM Real Assets (Legal & General) announces, on behalf of its LPI (Limited Price Inflation) Income Property Fund, has agreed to fund the development of a new high-quality student accommodation block which is pre-let to the University for the Creative Arts (UCA).
The proposed new 252 bed student residence, located in the heart of UCA’s Farnham campus, has been purchased on a forward funding basis for around GBP23 million.
The UK benefits from many of the best universities in the world and has one of the world's strongest higher education systems. Attracting international students and academic talent, the higher education sector remains vital to the long-term prosperity of the UK economy. In order to support this strong demand from students, modern purpose-built accommodation is an essential part of a first class education experience.
The property will be leased to the University on a new 35 year full repairing and insuring lease on completion of the development, which is scheduled for summer 2021. The development is being carried out by UCA.
Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, says: “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 good University.”
Avison Young acted for Legal & General on this deal and JLL acted for UCA.