Crosstree forward funds £125m London student scheme
Crosstree Real Estate Partners has agreed to the forward acquisition of a purpose-built student accommodation (PBSA) scheme in London.
The private real estate investor will fund the 373-bedroom project that forms part of the wider £3.7bn Canning Town and Custom House regeneration programme. It is understood that the project has an end value in excess of £125m.
Designed by PRP Architects with interiors by Holloway Li, the student accommodation scheme marks phase four of the £600m Hallsville Quarter masterplan undertaken by Linkcity, the development arm of construction firm Bouygues UK. It will target BREEAM Excellent certification, and a completion date in time for the 2026/27 academic year.
Planning consent was granted at the end of 2022 for the scheme which includes 6,100 sq ft of ground floor flexible commercial space and landscaped public realm.
Once finished, Hallsville Quarter will have more than 1,100 private and affordable homes, 323,000 sq ft of leisure and retail space, as well as a new hotel. The masterplan includes new public spaces such as pedestrian links, play areas, parking and cycling inclusions.
Oliver Campbell, development director at Linkcity, said, “The location of this development, in the thriving new town centre in Canning Town, will provide a vibrant area for students with excellent links into the centre of London. Commencing this project with Crosstree Real Estate Partners, we look forward to seeing the progress on site as we reach the final stages of this landmark, residential project.”
Peter Robinson, partners at Crosstree Real Estate Partners, added: “Crosstree continue to be active investors in the student accommodation sector benefiting from attractive cyclical and secular fundamentals. Given the market dislocation for forward funding transactions of this type, Crosstree welcomes the opportunity to partner with Bouygues UK, a best in class contractor/developer in taking forward a thoughtfully designed and highly specified PBSA scheme.”
Crosstree made its debut into the student accommodation sector in December 2020. having bought the 333-bedroom The Valentine project in Gants Hill, east London from owner-developer Tide Construction, which is now valued in the region of £80m.
Tide is the company behind Ten Degrees. the 44-storey modular George Street tower in Croydon, known as one of the world’s tallest modular buildings and now owned by Henderson Park and Greystar.
Crosstree has teamed up with Outpost Management to operate the Valentine. Debt financing for the acquisition was provided by CBRE Global Investors Credit Strategies, now known as CBRE Investment Management (CBRE IM).
5 April 2024 | May Agaran | React News