Joint venture to develop £40m student flats scheme

A joint venture has been established to develop a £40m student accommodation scheme in Birmingham city centre.Construction on the project, which will include 435 bedrooms, is set to start in April with the first students due to move in for the 2020/2021 academic year.Harrison Street Real Estate Capital, one of the largest owners of student housing in the US and Europe, and Uliving, the student accommodation developer and operator, have signed a partnership agreement to invest in purpose-built student accommodation properties in the UK.The companies have now finalised agreements on their first project which will be Uliving’s first off-campus, direct-let project.The development will be built on the site of Bath Court on Bath Row, after planning permission was granted by Birmingham City Council, and include a gym, an open-plan common room area with seating, games and television screens, two study rooms, a launderette, a dance studio and a landscaped roof terrace.UBS Asset Management is providing senior debt funding through its real estate debt fund, the UBS Participating Real Estate Mortgage Fund (UBS-PREMF), while Harrison Street is the majority equity investor. Uliving is also providing equity and is the developer and operator.Uliving’s partners Bouygues Energies and Services and Bouygues UK will provide facilities management and construction services.Eastdil Secured acted as financial adviser and Trowers & Hamlins was legal adviser to the joint venture.DLA Piper was legal adviser to Harrison Street Real Estate Capital and CMS Cameron McKenna Nabarro Olswang was legal adviser to UBS Asset Management.