Investec Bank has provided Balfour Beatty with £26m in debt finance for its student accommodation scheme in Kennedy Street, Glasgow.
The 536-bed scheme had a total end value of £37m, and total equity of the project stands at £11m.
The facility was agreed with Investec Bank’s structured property finance team, which offers senior/stretched senior debt, and equity solutions to clients.
It is Balfour Beatty’s first project for the student accommodation direct let market. Completion is scheduled for July 2017.
Mark Bladon, at Investec Structured Property Finance, added: “It is very rewarding to be supporting Balfour Beatty in this exciting new venture given it is the first time it is developing and directly letting a student block.
“We were attracted to work with Balfour Beatty given its size, profile and track record as a contractor. Notwithstanding signs of yield compression, we still like the student accommodation market and our appetite remains strong to provide stretched senior development finance for the right deals such as this.”
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