Agree development facility with Yorkshire Bank on their Sycamore House, Leeds student housing development scheme
Crosslane Property Group (“Crosslane”) alongside joint venture partner Harrison Street Real Estate (“HSRE”) announce that they have agreed a development facility with Yorkshire Bank, part of CYBG PLC for their purpose-built student accommodation development scheme Sycamore House, in Leeds.
The property has a gross development value of approximately £15 million upon practical completion, which is due in September 2018 for the start of the 2018/19 academic year.
Upon completion, the property will consist of five stories with 117 luxury en-suite self-contained studio apartments, ranging in size from 20sqm to 38sqm. Residents will benefit from a central, private outdoor courtyard, high quality communal facilities comprising of a common room, study area, gym and luxury entertaining room. Additionally, students will enjoy superfast 100 Mbps broadband and Wi-Fi throughout the property.
Prime Student Living, the student accommodation lettings and operational management arm of Crosslane, will seek to ensure the development is fully pre-let and thereafter, be responsible for managing it. At this stage of development, occupancy is already over 30%, reflecting the demand for high specification student accommodation in the city, which has 51,000 students across Leeds University, Leeds Beckett University, Leeds College of Art and Leeds Trinity University.
Crosslane has been working in conjunction with the surrounding universities and has recently become a member of UNIPOL, a student housing charity providing information, advice, policy development and setting, measuring and standard checks. Crosslane recently attended student accommodation fairs at both Leeds University and Leeds Beckett University and received a very positive response from students on the sophisticated boutique design and specification of the scheme at Woodhouse Square.
The joint venture will be delivering three more schemes in Coventry, Portsmouth and Swansea for the 2019/20 academic year. Prime Student Living will seek to ensure the developments are fully pre-let and thereafter, be responsible for managing them.
Crosslane were advised by DLA Piper and Walker Morris, with Yorkshire Bank being advised by Addleshaw Goddard.
Andy Whatson, CEO, Crosslane Property Group, said:
“We continue to see strong and growing demand from international and domestic banks, institutions and insurers and are pleased to have secured this new facility from Yorkshire Bank. This offers our joint venture with Harrison Street funding diversification as well as the potential for future financing with Yorkshire Bank as we deliver on our ambition to develop a further 6,000 beds across 25 development schemes in the UK for completion by 2021.
Demand remains high for well-located premium purpose-built student accommodation that is well managed with great facilities, particularly in Leeds, due to its significant student population. Crosslane has invested significantly in Yorkshire, and by delivering Sycamore House, Crosslane will have provided a total of 554 beds in the region.
Crosslane has a successful track record of developing high quality student accommodation, working closely with universities, and other key contributors such as UNIPOL.”
Alex Garland, Real Estate Finance Senior Director at Yorkshire Bank, said:
“Sycamore House is a well-located development, managed by an experienced team and is purpose built to fulfil student demand. Leeds is a thriving university city and if you combine this project with all the regeneration work going on in the area, it’s an attractive place to come and study. Leeds is home to Yorkshire Bank’s head office, we are invested in the success of this city and we are delighted to have closed this debt financing with the Crosslane and Harrison Street teams.”