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Stelling Secure Modular Development Loan

Posted by Richard Ward

Image courtesy of Flickr, (View licence)

Stelling Properties Group has secured a development loan of £10.8m from Investec Real Estate to fund the construction of Riverside House in Guildford.

The loan is a first for Investec Real Estate as it is being used to build the property off-site in a modular form.

The financing also includes an investment tail so Stelling can retain the property once stabilised.

Commenting on the deal, Ian Burdett and Stuart Scott from Investec, said: "Despite the disruption students have faced during the Covid-19 pandemic, the current academic year is set to see a record number of 18-year-olds from the UK starting in higher education, making demand for tailored student accommodation in under-supplied markets incredibly robust."

"This is our first transaction with Stelling, who specialise in utilising innovative and sustainable building techniques to deliver an appealing product quickly and efficiently, and we look forward to working with them again in the future."

The scheme is due to open in time for the 2022-23 academic year and will be able to accommodate 99 students.