LGIM Real Assets (Legal & General) announces that it has agreed to fund the development of two high-quality student accommodation blocks which have been pre-let to the University of Lincoln. EBW Developments is the developer on the scheme which is a joint venture between Bloc Ltd and Marcus Worthington Properties Ltd.
The acquisition was made on behalf of Legal & General’s LPI (Limited Price Inflation) Income Property Fund for a total consideration of £25.6m.
The UK boasts many of the best universities in the world and has one of the world’s strongest higher education systems. Attracting international students and academic talent, the higher education sector remains vital to the long-term prosperity of the UK economy. In order to support this strong demand from students, modern purpose-built accommodation is an essential part of a first class education experience.
Let to the University of Lincoln for 21 years, the accommodation will consist of 301-ensuite student rooms arranged across two modern blocks. With completion planned for the autumn of 2019, the property will be the latest addition to the University of Lincoln’s student accommodation provision and will be located adjacent to the University campus in the city centre. The development is set to enhance the links between the High Street, the University’s “Sarah Swift” building, Brayford Wharf East and the University campus.
Tudor Toone acted for Legal & General and JLL acted for the Developer.
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Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, commented: “The quality of accommodation and its central location to campus can represent a large factor for students when deciding where they want to go to University. We believe that quality facilities help to provide a quality education. This is an excellent buy for the fund, offering a secure long term income stream from an investment grade University as well as satisfying our objective of continuing to secure public sector tenants for the Fund.”
Launched in 2010, the LPI Income Property Fund offers defined Benefit pension schemes an innovative way to invest in direct property with secure, primarily government backed, inflation-linked sources of income, generating income yields well in excess of those from comparable asset classes such as index-linked gilts or social housing debt. The Fund has over £1.2 billion of assets under management.