Joint venture agrees development facility for student scheme
Crosslane Property Group alongside joint venture partner Harrison Street Real Estate has agreed a development facility with Yorkshire Bank, for its purpose-built student accommodation development scheme Sycamore House in Leeds.
The property has a gross development value of approximately £15m upon practical completion, which is due in September 2018 for the start of the 2018/19 academic year.
The five storey building will comprises 117 luxury en-suite self-contained studio apartments, ranging in size from 20sqm to 38sqm.
Residents will benefit from a central, private outdoor courtyard and communal facilities including a common room, study area, gym and entertaining room.
Prime Student Living, the student accommodation lettings and operational management arm of Crosslane, will be responsible for managing the building.
At this stage of development, occupancy is already over 30%.
Crosslane was advised by DLA Piper and Walker Morris, with Yorkshire Bank advised by Addleshaw Goddard.
Andy Whatson, CEO, Crosslane Property Group, said: “We continue to see strong and growing demand from international and domestic banks, institutions and insurers and are pleased to have secured this new facility from Yorkshire Bank. This offers our joint venture with Harrison Street funding diversification as well as the potential for future financing with Yorkshire Bank as we deliver on our ambition to develop a further 6,000 beds across 25 development schemes in the UK for completion by 2021.
Demand remains high for well-located premium purpose-built student accommodation that is well managed with great facilities, particularly in Leeds, due to its significant student population. Crosslane has invested significantly in Yorkshire, and by delivering Sycamore House, Crosslane will have provided a total of 554 beds in the region.
Crosslane has a successful track record of developing high quality student accommodation, working closely with universities, and other key contributors such as UNIPOL.”
Alex Garland, real estate finance senior director at Yorkshire Bank, said: “Sycamore House is a well-located development, managed by an experienced team and is purpose built to fulfil student demand. Leeds is a thriving university city and if you combine this project with all the regeneration work going on in the area, it’s an attractive place to come and study. Leeds is home to Yorkshire Bank’s head office, we are invested in the success of this city and we are delighted to have closed this debt financing with the Crosslane and Harrison Street teams.”
