L&G forward funds Surrey student accommodation block
Legal & General is to fund a new £23m student accommodation building in Farnham, Surrey, on behalf of its Limited Price Inflation Fund.
The 252-bed block has been pre-let to the University for the Creative Arts (UCA) and will be built on its Farnham campus.
The lease is for 35 years and covers full repair and insurance once the building has been completed. UCA will carry out the development, which it anticipates completing in summer 2021.
“The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to University,” said Derek Gilby, senior fund manager of the LPI Income Property Fund.
“We believe that quality facilities that are affordable for students can help to provide a quality education. This is an excellent buy for the Fund, offering a secure long term income stream which provides a hedge to inflation from a good University.”
Avison Young acted for L&G and UCA was represented by JLL.