The funding will be used for the development of a 454-bed Grade-A student scheme in Bournemouth that will include an additional 2,000 sq ft retail unit.
Investec will provide the senior debt, which will fund the scheme through to practical completion in August 2017, with a subsequent 18-month investment period.
This is Investec’s second deal with Curlew, one of the UK’s largest investors in purpose-built student accommodation.
The scheme is located on Christchurch Road (pictured above), which is easily accessible from both of Bournemouth’s higher education campuses.
Mark Bladon from Investec Structured Property Finance said: “Investor appetite for well-located student accommodation schemes in the UK shows little sign of abating, with the long-income profile of these operationally backed assets particularly attractive.
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“Both of Bournemouth’s higher education institutions – which collectively total more than 23,000 students – continue to grow in reputation, a key factor in our decision to again partner with an experienced and trusted operator in Curlew to deliver this purpose-built scheme.”
Brett Robinson, director at Curlew Capital, the investment adviser to Curlew Student Trust, added: “We continue to both identify and undertake student accommodation schemes of this nature, which offer market-leading returns and which we have the track record and resources to deliver on behalf of our investors.
“With a significant supply-demand tension for high-quality accommodation, Bournemouth is an ideal fit with our investment strategy.”
Investec’s lending to real estate funds – such as Curlew – has totalled over £400m in the last three years