Pictured above: (l-r) Ian Wilby, Barclays Corporate & Joe Cross, Construction Director, Iliad Group
Barclays Corporate today announced it has provided senior debt finance to Liverpool-based developers The Iliad Group for a new £38m student property development near Aston University in Birmingham.
Construction has now begun on the 656 bed scheme on Bagot Street, which is a joint venture between two long-standing Barclays Corporate clients, The Iliad Group and Cosmopolitan Student Homes (CSH), a subsidiary of Cosmopolitan Housing Association. Once completed CSH, the 7th largest student accommodation provider in the UK, will enter into a 35-year FRI lease to manage and operate the property.
The site, which is well located for student accommodation, in close proximity to the city centre and all of Birmingham’s universities, will consist of 2 blocks providing 656 premier student bedrooms with a seventeen storey tower element overlooking Lancaster Street.
The facilities were arranged by Ian Wilby, Property Relationship Director, Barclays Corporate. Barclays Corporate was advised by Addleshaws and Iliad Group by Hill Dickinson.
Tim Molloy, Group Finance Director, The Iliad Group said:
Iliad are very pleased to have got such a significant project on site in the midst of very challenging times. We look forward to further schemes with Cosmopolitan Student Homes and building on the growing relationship with Barclays.
Ian Wilby, Property Relationship Director for Barclays Corporate said: “Although the economic crisis is global the property market remains local and there will always be opportunities. The student market is rather buoyant at the moment as student numbers continue to soar and the demand for quality new accommodation is also very high. This transaction is testament to the continuing availability of debt funding to good quality corporates and hopefully cements a long and mutually rewarding relationship between Barclays Corporate and The Iliad Group. We are proud to be associated with this long standing Liverpool-based company and reinforce our market leading position in the student accommodation sector.”
Bagot Street will be completed and open for business for the 2011-2012 university year.