LGIM Real Assets

LGIM to fund development of Scottish student accommodation block



LGIM Real Assets (Legal & General) has agreed to fund the development of a new student accommodation block which has been pre-let to a top Scottish university.

It has announced this on behalf of its LPI (Limited Price Inflation) Income Property Fund and has completed the purchase from Lincam Pentland Ltd, a subsidiary of S1 Developments Limited.

The purchase of the proposed 315-room student residence was completed on a forward-funding basis for a price of around £35m.

The property will be leased to the university on a 20-year, full repairing and insuring lease on completion of the development.

The scheme is being carried out by S1 Developments and is scheduled for completion in September 2020.

Derek Gilby, senior fund manager of the LPI Income Property Fund, said: “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 top investment grade university.”

Dan Teague of S1 Developments Limited, added: “We are delighted to have concluded this transaction with Legal & General, who are a perfect partner for ourselves.

“We will be providing exceptional accommodation for the university in time for the 2020/21 academic year.

“We are known for providing best-in-class housing and we hope for the same reputation within the commercial property world.”


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