Iliad gets funding for £38m student tower

LIVERPOOL-based developer The Iliad Group has secured senior debt finance from Barclays Corporate for a new £38m student property development near Aston University in Birmingham.

Construction has now begun on the 656-bed scheme on Bagot Street, which is a joint venture between The Iliad Group and Cosmopolitan Student Homes (CSH), a subsidiary of Cosmopolitan Housing Association.

Once completed for the 2011-2012 university year, CSH will enter into a 35-year full repairing and insurance lease to manage and operate the property.

The site will consist of two blocks providing 656 student bedrooms with a seventeen-storey tower element overlooking Lancaster Street.

Tim Molloy, group finance director of The Iliad Group said: “Iliad are very pleased to have got such a significant project on site in the midst of very challenging times.  We look forward to further schemes with Cosmopolitan Student Homes and building on the growing relationship with Barclays.

The debt facility was arranged by Ian Wilby, property relationship director, Barclays Corporate.

He said: “Although the economic crisis is global the property market remains local and there will always be opportunities. The student market is rather buoyant at the moment as student numbers continue to soar and the demand for quality new accommodation is also very high.

“This transaction is testament to the continuing availability of debt funding to good quality corporates and hopefully cements a long and mutually rewarding relationship between Barclays Corporate and The Iliad Group.”

Barclays Corporate was advised by Addleshaws and Iliad Group by Hill Dickinson.