The bank’s structured property finance team provided a £23.2m stretch senior debt facility, which will be used through to the scheme’s completion in time for the 2017/18 academic year.
Full planning permission has been secured to turn the 70,000 sq ft site at Fitzalan Court on Newport Road in Cardiff city centre from a 1980s office campus of seven buildings into a student development providing 271 studios and 84 two-bed flats.
The communal facilities will include a landscaped courtyard, a residents’ common room, gym, cinema, lounge, games area, coffee bar and study areas.
Graham Inglis, commercial director at McLaren Property, said: “Student accommodation remains an attractive sector in which to invest. McLaren and PMG are pleased to have arranged finance with a lender that is experienced in this sector and look forward to working with Investec on this project.”
Mark Bladon at Investec Structured Property Finance, added: “This will be our second student scheme with McLaren, who have established themselves as a market leader in this space, as well as being our third student deal in Cardiff and we look forward to helping deliver a successful project.