Legal & General has agreed to fund the development of two high-quality student accommodation blocks which have been pre-let to the University of Lincoln.
The acquisition was made on behalf of Legal & General’s LPI (Limited Price Inflation) Income Property Fund for a total of £25.6 million.
EBW Developments – a joint venture between Bloc Ltd and Marcus Worthington Properties Ltd – is the developer on the scheme, which has been let to the University of Lincoln for 21 years.
The accommodation will consist of 301 ensuite student rooms arranged across two modern blocks and will be the latest addition to the University’s student accommodation provision located alongside the campus and city centre.
With completion planned for the autumn of 2019, the development is set to strengthen the links between the High Street, the University’s ‘Sarah Swift’ building, Brayford Wharf East and the University campus.
Launched in 2010, the LPI Income Property Fund offers an innovative way to invest in direct property with secure, government-backed, sources of income. The Fund currently has over £1.2 billion of assets under management.
Derek Gilby, senior fund manager of the LPI Income Property Fund, said the quality of accommodation and its central location to campus is a large factor for students when deciding where they want to go to University. Therefore, quality facilities contribute to quality education.
He said: “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.”