Maslow Capital complete funding of £18m PBSA scheme in Edinburgh

Singapore-based Q Investment Partners (QIP) and HG Developments Limited (HGD) announces £18m senior debt financing from Maslow Capital secured for a 198 bedroom student accommodation project in Edinburgh, Scotland

The project represents the first site to be developed out as part of the QIP / HGD partnership
This is QIP’s second senior debt financing with UK-based Maslow Capital, a leading provider of real estate development finance
HG Construction Limited has been appointed as the main contractor with the scheme set to deliver 198 student beds in time for the 2021 academic year
QIP / HGD will appoint Homes for Students to manage the scheme under their Prestige Student Living brand

London, 27th Jan 2020 – Singapore-based Q Investment Partners (QIP) and HG Developments Limited (HGD) have announced that they have secured debt finance from UK development lender Maslow Capital for their purpose-built student accommodation (PBSA) development in Edinburgh, UK.

The facility will be used to fund the purchase and development of a 198 bed PBSA scheme in Edinburgh. Located opposite Meadowbank Stadium and in close proximity to the city centre, the scheme will be delivered by HG Construction Limited and managed by Homes for Student under the Prestige Student Living brand. Once complete, the building will be a contemporary state-of-the-art development comprising a mix of clusters and studios together with a community/office space, common areas, a laundry and cycle parking.

Ben Hall, Head of Investment at Q Investment Partners said “The prime location of the scheme is further bolstered by Edinburgh’s reputation as a top tier student city, with a university ranked 23rd in the UK by the Times Good University Guide and 29th in the world by the Times World University Ranking.

Despite the uncertainties surrounding Brexit, investor interest in UK PBSA remains strong. The sector is also best positioned to benefit from the on-going trade tensions between US and China as Chinese students look to study outside the US.

Moreover, the outlook for UK PBSA is very encouraging and will be driven by positive fundamentals, supportive demographic trends, strong international demand and growing pressure on housing.

Demand from Asia-based investors is particularly robust, and through this project, QIP is delighted to support Singapore-based investor Diamond Hospitality with their global real estate ambitions. Birbal Singh Bajaj and Sebestian Soh, founders of Diamond Hospitality, are looking to expand their footprint in the UK as capital partners with QIP for future projects”. Hall adds.

Commenting on the attractiveness of Edinburgh as a location for continued PBSA development, Maslow Capital Deal Originator, Sky Mapson said “From a development perspective, there is currently a structural undersupply of PBSA in Edinburgh, there is a limited pipeline and a large international student population relative to the UK average. The strength of the location is also underpinned by the high level of rental growth seen in PBSA rents over the past few years, making it an attractive location for further investment”.

Highlighting the collaboration between all three carefully selected partners, Rob Greaves, director for HGD said “Maslow Capital understands the intricacies of the student market and we believe that along with our experienced contractors HG Construction and proven operators Homes for Students, we have assembled a leading team fully committed to the delivery of this project”.

About Q Investment Partners

QIP is a Singapore-based private equity real estate firm. With deep expertise in the capital and real estate markets, our team of investment professionals offers institutional and professional investors unique opportunities to invest or co-invest alongside us in strategic sectors.

About HG Developments Limited

HG Developments (www.hgconstruction.co.uk) is an associated company to HG Construction, which is a full-service construction platform with more than 20 years of track record in the UK and Purpose-Built Student Accommodation, residential, commercial, mixed use and hotel sectors. HGD specialises in the development of purpose built student housing, bringing together the significant experience of the shareholders in all aspects of development, financing and construction of this specialist asset class.

About Maslow Capital

Maslow Capital is a leading provider of real estate development finance. We offer flexible funding solutions for professional developers across the UK undertaking residential, mixed- used, student, hotel and industrial developments. We pride ourselves on transparent decision-making, consistent delivery and developing long-term relationships with like-minded brokers and developers.

Future Generation secures its largest loan with a £62m facility from Maslow Capital for its Guildford student housing project

‘Guilden Park’ development sits in an area chronically underserved by Purpose Built Student Accommodation (PBSA)
The 533-bed scheme received planning permission on appeal in November 2018
Construction will begin immediately and complete in time for the 2021 academic year

Student accommodation specialist Future Generation has today secured a £62million development loan from Maslow Capital to build a landmark development in Guildford.

This is Future Generation’s largest debt facility to date, for its largest ever scheme.

The six-storey, 533-bed Guilden Park project already has planning permission and is set for completion in time for the start of the 2021 academic year. Most of the scheme (84%) will be made up of shared apartments, while the remaining 16% will be studios.

With a gross development value in excess of £102million, the project will seek to meet huge demand in an area grossly underserved by Purpose Built Student Accommodation (PBSA). PBSA accounts for less than 1% of Guildford’s rental stock, with the vast majority of students currently renting from private landlords.

This is despite the Surrey town being home to four major educational institutions — the University of Surrey, Guildford College, the Academy of Contemporary Music and the University of Law.

Future Generation is a joint venture between developer Southern Grove and Tadhamon Capital. This will be the company’s third PBSA scheme to enter construction. Similar projects in Sheffield and Colchester, that were also supported by Maslow Capital, are currently under development and both due to complete before the start of the 2019/20 academic year. Guilden Park takes the total value of Maslow Capital loans across the three schemes to in excess of £100m.

In 2017, Future Generation embarked on an ambitious mission to build 10,000 student beds in five years, while simultaneously raising the quality of affordable student homes. To date, the firm has a pipeline of approximately 5,000 student beds.

Guilden Park’s architects, DMWR, have incorporated ground-floor courtyards, a gym and a signature Sky Lounge with a roof terrace overlooking the site’s leafy surroundings. The focus on these design aspects is driven by Future Generation’s awareness of mental well being and the positive effect the living environment can have.

Future Generation also partners with Samsung to provide high-quality technology through its buildings, and Guilden Park will be no exception. The scheme will feature Samsung air-conditioning, WiFi and TVs in every room as standard. The Sky Lounge will also boast a ‘Samsung Wall’ televisual display with surround sound. Construction will begin immediately.

Andrew Southern, Chairman of Southern Grove and Future Generation, commented:

“Maslow Capital understands the fundamentals of the student market and are themselves specialists in this sector. We’re delighted to partner with them again for what is the single biggest loan facility secured by Future Generation so far.

“Students flock to PBSA schemes because the quality they offer is so superior to that provided historically by private sector landlords.

“We chose Guildford because purpose-built student accommodation isn’t something this area has really seen yet on any meaningful scale. The demand is there and we are going to be heavily disrupting that market”.

Ellis Sher, Co-Founder of Maslow Capital, added:

“Student accommodation in the UK has exploded over the past decade as institutional investors have realised how rewarding it can be to offer students a better standard of living. We’re pleased to be working with Future Generation again on the strength of the quality of their projects and deep sector knowledge.”

“We are one of a handful of specialist development lenders that are able to write loans up to £150 million. The flexibility of our balance sheet allows us to support experienced developers like Future Generations who continue to evolve the PBSA space through bespoke offerings that go above and beyond the trends seen historically in the sector”.

“Maslow capital’s dedicated PBSA division is resourced by a team with considerable experience in this asset class. As a lender, we continue to provide developers with a specialist service from a team that understands the intricacies of the sector and this is reflected by the number of PBSA schemes we are funding as well as their size”.

Uncap your ambition with Maslow Capital (Video)

Maslow Capital is a leading provider of real estate development finance. We help developers realise their ambitions. We offer flexible funding solutions for professional developers across the UK undertaking residential, mixed-used, student, hotel and industrial developments.

Maslow announces a strong start to 2019 with the successful completion of eight transactions with a combined loan value over £100m

Maslow Capital, the specialist provider of real estate development finance, announces an excellent start to the year with the completion of a diverse range of development facilities that will see the delivery of 442,856 sq ft. of real estate assets covering residential, serviced apartments, student accommodation and retirement living.

With the completion of these deals, Maslow continues to demonstrate its deep sector and asset class knowledge which allows for the funding of complex deals across the UK. Strenghed by its depth of funding and recent high-profile additons to the team, Maslow continues to support capable developers in the delivery of their business plans notwithstanding the economic uncertainty facing the UK.

Commenting, Ellis Sher, Co-Founder and CEO of Maslow Capital, said:

“We are delighted with the start we have made to 2019, not only because of the quality of the transactions, but also their diversity. With the expansion of the Maslow team, we have more internal expertise to assess a wider array of deals which include specialist retirement living and serviced apartments. As we navigate the uncertain consequences of Brexit, we are committed to supporting our developers and working in partnership with them to deliver their real estate projects.”

Maslow is one of a handful of specialist development lenders who are able to write loans from £5 million with no upper limit and without rating agency or regulatory influence. The flexibility of Maslow’s balance sheet allows it to support multiple types of real estate and construction methodologies from self-build to fixed price and from part built to ground up.

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Introducing our newest Originator, Emma Burke

Emma is a residential & commercial development finance specialist with a proven track record in building business relationships over the last 16 years in both the UK and Ireland.

Prior to joining Maslow Capital, Emma headed up Octopus Property’s Development Finance Team.

During her 3 years at Octopus, Emma was responsible for originating & structuring over £400m of development debt facilities and managing a team of 5 development finance specialists.

Before joining Octopus, Emma was part of the Structured Property Finance team at Investec Private bank and was responsible for deal origination and the management of an existing portfolio. During her time at Investec, Emma structured development facilities for the construction of industrial units, hotels, residential development sites, large PRS schemes and serviced apartments.

Emma holds a Bachelor of Business (Honours) Degree from National University of Ireland, Galway and has recently completed a leadership management course.

When asked what Emma will bring to the team Ellis Sher, Maslow Capital, Co-Founder and CEO said:

“Emma is driven, ambitious and has a terrific understanding of our market place. We are delighted that she has chosen to join us. Emma will play a central role in the Maslow origination team who together cover the length and breadth of the UK and where we have a broad appetite to fund real estate developments across residential, commercial, industrial, mixed use and purpose-built student accommodation.”

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