Curlew Capital and CBRE Global Multi Manager (GMM) have acquired three UK regional student accommodation schemes for £63m, financed by a £23m five-year phased development and investment loan by Royal Bank of Scotland.
Curlew Student Trust (CST), a newly-established seven-year fund backed predominantly by institutional clients of CBRE GMM, has acquired the three schemes in Sheffield, Swansea and Birmingham from Watkin Jones Group, the developer.
CST’s maiden investment is at differing stages of completion, with the Swansea Campus already 50% complete, Sheffiled around 10% complete and the Birmingham site, an unstarted redevelopment of a listed building formerly the site of a local fire station.
The Sheffield and Swansea schemes are due for delivery in time for the 2014-15 academic year, while the Birmingham scheme will welcome students in 2015-16.
RBS’ financing package, therefore, is spread across two tranches with the Sheffield and Swansea tranche expected to convert to an investment loan prior to completion next summer and the Birmingham scheme approximately 12 months thereafter.
CST has a target size of £250m will be managed by Curlew Capital, led by Paul Oliver, former joint CEO of Teesland plc. Operational and property management will be provided by Fresh Student Living, led by Rebecca Hopewell.
CST is targeting fresh student accommodation investment opportunities, including forward-funded structured deals, in the coming months and will then look to raise capital through CBRE GMM’s roster of multi-manager investors.
The fund invests is seeking to invest in prime purpose-built student accommodation throughout the UK.