M&G Investments is advancing £125m to Urbanest for a 654 bed student property scheme in the City of London.
Urbanest City will complete in 2021 and will provide accommodation for King’s College London students. The site will also incorporate 60,000 sq.ft. of office space. It will add to Urbanest’s portfolio of luxury student accommodation where single studio apartments typically cost £370-580 per week.
Adam Willis, Associate Director at M&G’s Real Estate Finance team, adds: “We continue to see increasing demand for student accommodation in the capital and this deal provides our institutional investors with access to attractive returns secured against high quality real estate in London’s city centre.”
Vicky Skinner, CFO of Urbanest, says: “We are delighted to be working with M&G and KCL again and our aspiration with Urbanest City is to add another landmark location within our expanding PBSA portfolio.”
It is rare to find student property developments in the City itself, with most developers favouring up-and-coming (ie. cheaper) areas around the fringes. This investment no doubt reflects the forecast demand for high end student property in prime central London locations.