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Starz Real Estates Provides Refinancing for Student Assets

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Commercial real estate lender Starz Real Estate has provided a £29.7 million senior facility to asset manager Ethos Property against two student accommodation schemes.

Currently operated by Collegiate AC, The Neighbourhood Exeter and The Neighbourhood Cardiff provide 369 student bedrooms.

Commenting on the transaction, Limor Shilo, Head of Loan Origination at Starz, said: "We are pleased to have supported Ethos Property in their refinancing of The Neighbourhood portfolio. Both the Exeter and Cardiff student housing markets display a demonstrated demand and supply imbalance, with large parts of the student population having no access to purpose-built accommodation. The Neighbourhood portfolio is therefore well placed to take advantage of this imbalance, and, along with Collegiate AC's expertise, will enjoy very strong performance into the future. Ethos undoubtedly owns best-in-class assets in their local markets."

Meanwhile, Managing Director of Ethod Property Christos Demetriou, added: "Our approach to The Neighbourhood is to design and develop exceptional student living experience commensurate with the diverse and multi-dimensional needs of sophisticated students from all around the world. These assets have been designed with student community and individual wellbeing at the heart of the accommodation experience and we are delighted with the feedback from our residents at this very early stage. Completing the development phase represents a major milestone in the lifecycle of our client's investment and we are delighted to be working alongside the team at Starz as we move to stabilising the assets in their early stages of operational use."