This is the first modular project that Investec has funded and aligns with its approach in supporting the delivery of buildings with strong sustainability credentials.
The loan will enable the MMC specialist to build out the modular property off-site using its dedicated factory near Winchester.
Investec’s facility also includes an investment tail so that Stelling can retain the property once stabilised.
The Riverside House scheme — located within walking distance from the University of Surrey — will include 99 studio units, a cinema room, games area, communal kitchen, dining area, and quiet study space.
The development is expected to be completed in time for the 2022/23 academic year and will be operated by UniLife.
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Stuart Scott, real estate finance originator at Investec, commented: “Despite the disruption students have faced during the Covid-19 pandemic, the current academic year is set to see a record number of 18-year-olds from the UK starting in higher education, making demand for tailored student accommodation in under-supplied markets incredibly robust.
“This is our first transaction with Stelling, which specialises in utilising innovative and sustainable building techniques to deliver an appealing product quickly and efficiently, and we look forward to working with them again in the future.”
Antonio Lopez, head of property operations and new opportunities at Stelling Properties Group, commented: “Students in Guildford have, in the past, faced problems finding good quality PBSA near the university.
“Riverside House provides a high quality environment for students in a city centre location, within five minutes’ walk to the university.”