RedOak Property has agreed a £21.5m senior loan facility for its 330-bed purpose-built student accommodation development ‘Sandhills’ in Nottingham. Global real estate investment manager DWS and NatWest Markets have refinanced an existing senior loan at 65% LTV.
Located on Talbot Street in Nottingham City Centre near to Nottingham Trent University, the property is currently secured by a long-term lease to Unipol Student Homes for all 330 bedrooms.
Established in 2014, RedOak Property is a real estate fund focused on residential and student accommodation in regional centres. It develops, retains, and manages a portfolio of residential assets in the UK market.
Sandhills is anchoring the launch of a new student property fund, Student Fund 1, to invest in purpose-built student accommodation properties near to established universities across the UK.
Guy Norman, director at RedOak Property, said: “This refinance fits with our business strategy of retaining the asset in the long-term and reflects our commitment to the purpose-built student accommodation market.
“This transaction demonstrates the resilience of the sector, and the strong fundamentals of this asset in providing high quality and affordable purpose-built accommodation close to Nottingham Trent University campus.
“In what has been a challenging year, our new relationship with DWS and NatWest is a positive sign of the long-term confidence in the student accommodation market by institutional lenders.”
Alexander Oswatitsch, Head of European Real Estate Debt at DWS, said: “We are very pleased to have closed on this transaction. It is a great example of how the affordable end of student housing has shown resilience during COVID. We look forward to further establishing our relationship with RedOak Property.”
Sandhills is RedOak Property’s third purpose-built student accommodation development in the East Midlands during the past few years. The nine-storey new build is mostly comprised of units in five to seven bed clusters. It received planning in 2018 and reached practical completion in Autumn 2020 with RedOak Property obtaining planning and managing the development of the asset.