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Trowers & Hamlins advises on £100 million central London student accommodation joint venture

Trowers & Hamlins advises on £100 million central London student accommodation joint venture

Trowers & Hamlins has advised existing clients Apache Capital Partners LLP (Apache), the London and Gulf-based real estate investment management firm, and Tadhamon Capital BSC(c) (Tadhamon), the Bahrain-based Islamic investment company, on a new £100 million joint venture with McLaren Property for the development of a major student accommodation and office scheme in Shoreditch, London.

The development will comprise 419 high quality student accommodation units and 43,000 sq ft of office space, with completion of the development scheduled for the start of the 2015 academic year.  The development is well-located to benefit from the increasing demand from over 50,000 students studying within 20 minutes’ walk of the site.

Debt financing for the development is being provided by RBS and the office development has been forward sold to Helical Bar Plc for £21m.

This transaction represents the second successful acquisition by McLaren Property and Apache and Tadhamon from Ireland’s National Asset Management Agency (NAMA).  The first, for which Trowers & Hamlins acted for Apache and Tadhamon, was the 253-bedroom student accommodation development at Paris Gardens, in Southwark, London, which completed in summer 2013 and achieved 100 per cent occupancy during its first academic year.

Bill Jefferies, Trowers & Hamlins' UAE head of Corporate and Apache and Tadhamon relationship partner, commented:  "We are delighted to have completed our fourth student accommodation transaction with key clients Apache and Tadhamon.  Our expertise in the UK real estate and social infrastructure sectors, together with our long-standing presence in the Middle East, enable us to deliver a fully integrated service to international investors.  The stable income-generation and capital growth potential of student accommodation make it a particularly popular asset class right now."

Nick Harrisingh, Corporate partner at Trowers & Hamlins who led the deal team, added:  "It is extremely gratifying to see the relationship with Apache and Tadhamon going from strength to strength.  This deal was particularly pleasing as it was delivered in a relatively short timescale and the Trowers & Hamlins team was able to devise a bespoke Shari'ah-compliant structure for the Apache and Tadhamon investors."

Richard Jackson, Founding Partner, Apache Capital Partners, said:  “We are delighted to have completed the Paul Street, London transaction, our fourth major transaction with our trusted advisors Trowers & Hamlins.  The acquisition takes Apache and Tadhamon's assets under management to £225 million.  Apache Capital has again proven that through our experience and established contacts we can capitalise on the opportunities and act quickly, given the strength of our Middle Eastern backing, to fund high quality, institutional-grade investment opportunities with attractive terms."

In addition to Bill Jefferies and Nick Harrisingh, the Trowers & Hamlins team comprised Banking and Finance partner Katharine Lewis, Housing and Regeneration senior associate Julian Keith, Projects and Construction senior associate Stuart Wilson and Tax senior associate Michael Surry.