CBRE SECURES £30M LOAN FACILITY AS HENLEY GROWS PRESENCE IN STUDENT MARKET
CBRE Capital Advisors has arranged an investment facility of £30 million on behalf of private equity real estate investor, Henley, to support the company’s c. £50 million acquisition of a student accommodation portfolio, representing a loan-to-value of 55%. The portfolio consists of six purpose-built properties located in Sheffield, Stoke and Preston, totalling 1,519 student rooms.
The assets were purchased from Liberty Living and further strengthen Henley’s presence in the student accomodation sector. Through its Henley Ark platform, Henley also owns a portfolio of student properties in Dundee and Salford, value at over £25 million.
CBRE worked alongside Henley for over six months to model, structure and raise the appropriate finance for the project.
Student housing is the alternative sector that commands the most appetite from lenders and despite approaching the market in the aftermath of the referendum, willingness to lend was strong. An imbalance between supply and demand still exists in many university cities across the UK and as such, there is greater liquidity in the debt markets for this asset class.
Ian Rickwood, Chief Executive Officer of Henley added: “This aquisition builds on Henley’s track record since August 2016 within the student accomodation market, a space which continues to offer an attractive investment opportunity and favourable supply-demand dynamics. We remain committed to expanding our activities within the sector, and following the success of this transaction, we look forward to working with CBRE on other potential future projects.”