Dominus and Cheyne Capital Management (UK) have completed two senior loans totalling circa £400m to fund the development of Dominus’s purpose-built student accommodation (PBSA) schemes in the City of London.
The first loan will support a 669-bed PBSA development in Holborn and the second facility will fund a scheme offering just under 800 beds at 65 Crutched Friars, between Aldgate and Tower Hill.
The low carbon schemes, which have a combined GDV of circa £800m, will be developed and operated by Dominus.
Preet Ahluwalia, owner and principal director at Dominus, said: “Student accommodation is in very short supply across the UK, so completing these deals is a significant milestone that will facilitate the delivery of over 1,500 units in the heart of London. Importantly, 500 of said units will be available at affordable rents, enabling future generations from all backgrounds to benefit from them.
“These two assets form part of our pipeline of over 5,000 student units across key university towns in the UK, including Bristol, Manchester and Glasgow. Thanks to the unique professional strength of our development and asset management teams, we are building a market-leading portfolio that addresses national supply and demand imbalances, working in partnership with local governments and communities to deliver highly impactful, meaningful public benefit.
“Drawing on a decade of experience in creating hotels that locals and our guests love, we will create an innovative and inclusive experience for students which we hope will maximise their progression as they move through their careers. We look forward to delivering these schemes with our partners Cheyne Capital and working alongside the City of London Corporation to help deliver on their bold Destination City vision.”
Arron Taggart, head of UK investment at Cheyne Capital Real Estate, added: “With the UK government’s commitment to enrol 600,000 international students by 2030, student accommodation continues to be a resilient asset class, and we see an ever-growing demand for high-quality, well-located student living options. That is why we are pleased to be partnering with Dominus to deliver two developments in the heart of central London which will not only provide a first-class experience for students, but also stand to deliver benefits to the wider community.”
