View guides

Octopus Property Funds Coventry Accommodation

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Octopus Property has agreed to provide EREC Estates Ltd with a £36 million senior loan for the development of a purpose-built student accommodation scheme in Coventry.

The scheme was brought to Octopus Property by Arc & Co, who advised EREC Estates Ltd on the debt structure. This loan represents the largest single development deal completed by the team within Octopus Property.

The development will consist of two buildings totalling 502 beds, containing a mix of cluster flats and studios. It will also come equipped with a range of high-quality communal facilities and retail offerings.

The property is just a short walk from the main Coventry University campus and is centrally located adjacent to the city ring road.

The 27-month facility marks the third deal between Octopus and EREC Estates, following similar arrangements in Leicester and Coventry. This latest scheme is due to open in time for the 2019-20 academic year.

Commenting on the deal, Gavin Estace, Head of Residential Development at Octopus Property, said: "Whilst we are seeing some geographical polarisation caused by oversupply, the student accommodation sector remains one of the most attractive asset classes for investors. It's a sector that we like, and as long as the broader favourable supply demand dynamics remain in place for this type of innovative and high specification accommodation, we will continue to back schemes that require bespoke and efficient financing facilities."