Investec provides modular construction loan for Riverside House

Investec will provide a modular construction loan for Riverside House – the first modular PBSA scheme the company has funded.

Riverside House purpose-built student accommodation scheme in Guildford - Investec Real Estate | Stelling Properties Group | PBSA News
Riverside House PBSA scheme in Guildford.

Investec Real Estate announces that it has provided modular development specialists – Stelling Properties Group with a £10.83m senior facility to fund a purpose-built student accommodation scheme. The scheme – called Riverside House – includes 99-studio units in Guildford. This is the first modular scheme that Investec has funded – and aligns with the company’s approach to supporting the delivery of buildings with strong sustainability credentials.

“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, who specialise 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.”

Ian Burdett and Stuart Scott, Investec

Stelling is a Modern Method of Construction (MMC) specialist with previous projects in Winchester, Southampton and Portsmouth. This loan enables Stelling to build out the modular property off-site using their dedicated, state-of-the-art factory near Winchester. Investec’s facility also includes an investment tail so Stelling can retain the property once stabilised.

Alongside stylish living accommodation, amenities at Riverside House include a communal kitchen and dining area, quiet study space, a cinema room and games area. The property is in the heart of Guildford – overlooking the River Wey and within walking distance of the University of Surrey. The PBSA scheme is expected to complete in time for the 2022/23 academic year. Once complete, it will be managed by Unilife.

“Students in Guildford have, in the past, faced problems finding good quality, purpose-built student accommodation near the University. Riverside House provides a high-quality environment for students in a city centre location, within five minutes’ walk to the University. We are delighted to be partnering with Investec on our latest modular project.”

Antonio Lopez and Rutger Duetsch, Stelling

UCAS figures from July showed that this year there were more applicants than in any previous year, with a corresponding rise in offers from universities expected to result in a record number of students starting university or college in the 2021/22 academic year.

As of 30 June 2021, the final date to apply to up to five courses simultaneously, a total of 682,010 applicants (+4% on 2020) made 2,955,990 applications (+6%), resulting in 1,998,690 offers (+3%) made by universities and colleges.