Legal & General Funds Scottish Development

On behalf of its LPI (Limited Price Inflation) Income Property Fund, Legal & General has agreed to fund a new block of student accommodation for a top Scottish University.

Lincam Pentland Ltd, a subsidiary of S1 Developments Limited, has completed the sale of the proposed 337-bed purpose-built student accommodation, on a forward funding basis for a purchase price of around £35 million.

Dubbed Pentland House, the accommodation will be leased to the unnamed university on a 20-year full repairing and insuring lease on completion of the development. The scheme is due to be finished by September 2020, with work be carried out by S1 Developments.

Commenting on the deal, Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, said: "The quality and affordability of accommodation can represent a large factor for students when deciding where they want to go to University. 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 top investment grade University."

Meanwhile, Dan Teague of S1 Developments added: "We are delighted to have concluded this transaction with Legal & General who are a perfect partner for ourselves. We will be providing exceptional accommodation for the University in time for the 2020/21 academic year. We are known for providing best in class housing and we hope for the same reputation within the commercial property world."