Dominus and Cheyne Capital have secured a £250m loan from Standard Chartered to fund the ongoing transformation of a former office building at 65 Fleet Street in London into a student accommodation scheme.
The 370,000 sq ft, 13-storey scheme will provide 875 student rooms, 35% of which will be offered at affordable rents capped by the mayor of London, alongside extensive social, study and wellbeing spaces, including private dining rooms, gym and wellness facilities.
Alongside student accommodation, the development will also deliver cultural space on the ground and lower ground floors, including the restoration and enhancement of the Grade II listed Tipperary pub, London’s oldest Irish pub. Dominus is also creating new, improved public access to the Grade II listed Whitefriars Crypt, the last remaining structure of the 13th-century Whitefriars Monastery.
Designed with a retrofit-first approach that retains 75% of the existing structure, Dominus is targeting a BREEAM Outstanding rating and CRREM alignment for the development.
Preet Ahluwalia, CEO of Dominus, said: “London remains a world leader for higher education, with four of its universities ranked in the top 60 globally, yet it has an ongoing structural shortfall of accommodation to meet student demand. We are delighted to be partnering with Cheyne Capital and Standard Chartered on this financing, supporting the delivery of a leading student accommodation scheme just minutes from some of the world’s best universities.”
Hamish Gordon, director in Cheyne Capital’s real estate group, added: “We continue to see strong opportunity in London’s PBSA market, driven by growing demand for high quality, city centre student accommodation. We’re pleased to be working with Standard Chartered and our long-standing partner, Dominus, on a project that will help meet this demand while adding value to the surrounding community.”
Shane Moore, head of commercial real estate, EMEA, at Standard Chartered, said: “We are delighted to partner with Dominus and Cheyne Capital on the financing of 65 Fleet Street. The scheme is well positioned in a supply constrained central London market, underpinned by sustained demand from one of the world’s leading higher education hubs. This transaction reflects our continued support for high quality developments in the living sector across Europe.”
Eastdil Secured advised on the financing transaction.
