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.