UK: Investec Structured Property Finance (Investec SPF) has completed a £47.5 million debt facility to fund SACO’s development of two new schemes.
The two developments are a 168-unit in London's Aldgate, and a
72-apartments building in George Street, Edinburgh. Both are
scheduled to be delivered in 2016. The stretched senior debt
facility will be provided over a 27-month term.
Mark Bladon of Investec SPF said: "Over the last 18 months, we have seen significant yield compression in alternative property sectors as experienced management teams, backed by very strong equity sponsors, replicate the developer/operator model that has been so successful in student accommodation. We are firm believers that serviced apartments offer one of the most attractive investment propositions in the UK property market and investors are increasingly seeing the benefits of this asset class. We are delighted to have partnered with SACO on these developments and are excited to see the schemes delivered next year."
Simon Scott, chief development officer at SACO, said: "It was clear from the outset that Investec's detailed knowledge and understanding of the sector made them ideal partners for these developments."