Southern Grove has secured a financial package for their 111-bedroom, £36m purpose-built student accommodation (PBSA) scheme in Tower Hamlets, East London.
Specialist capital advisory firm Arc & Co. closed a 70% LTV debt package in partnership with Ingenious Capital Management, whilst also sourcing a joint venture equity investor to support the development of the PBSA scheme. Director at Arc & Co. Andrey Redman structured the debt with the Ingenious and Falco teams over a period of eight weeks.
The Tower Hamlets PBSA scheme will have a gross internal area of 43,249 sq ft, 5,382 sq ft of which will be commercial space. The scheme will also deliver both internal and external amenity spaces, including a roof terrace. There will be communal amenity and shared gardens on the first, third and sixth floors.
Construction is set to begin in Q4 this year. The design team included Ollie Cooper, Senior Planner at Maddox Planning, Adam Blacker, Director at DMWR Architects Ltd and Jonathan Lonergan, Director at eb7 Ltd.
“It is a pleasure to support ambitious developers who are acquiring and building to provide much-needed homes in the popular PBSA, BTR and co-living sectors.
“Arc & Co. has the necessary expertise and deep relationships to source funding partners that have the right appetite and experience to back these ambitious strategies.
“Our advisory approach ensures that the structuring results in the best possible outcome for the borrower—now and as part of their future business plans.
“We are excited to support all parties as they bring their strategies to fruition.”
Andrey Redman, Director, Arc & Co.
Southern Grove has ambitions to deliver 50,000 across its living sector brands, with 5,000 planned for 2024 alone.
Arc & Co. has three divisions – real estate, marine and aviation – allowing it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.
