UK: Fund manager Moorfield Group has entered into a development agreement with Melberry for a £42 million GDV scheme which will deliver 293 beds in Lincoln.
The scheme is part of Moorfield’s “Zennor” partnership with Funding House, which supports in origination and deal structuring. Set to complete in 2024, will include townhouses and cluster flats across almost 90,000 sq.ft and seven buildings ranging from one to four storeys, as well as landscaped gardens.
Moorfield and Melberry will target a BREEAM “Very Good” rating through a range of innovative construction techniques and new green technologies. Delivered by contractor Bowmer + Kirkland on a turn-key arrangement, the fully electrified scheme will include air sourced heat pumps – representing a 60 per cent energy consumption reduction compared to traditional gas heating – and elements of off-site construction. The site’s stone bedrock will be excavated and re-used during construction to reduce embodied carbon emissions, while labour will be sourced locally and local apprenticeships made available.
The development is the second purpose-built student accommodation scheme to be delivered by Moorfield and Melberry, following the completion of the 282 bed Enso in July 2023. Taking less than two years to complete, Enso achieved a BREEAM “Excellent” rating and is fully-let to students from the University of Colchester.
It is also the second scheme to be delivered by the Zennor partnership, where Moorfield and Funding House Limited – which supports across origination and deal structuring – provide de-risked funding opportunities in the living sectors. An agreement for the Apiary, an 81 home co-living scheme in Ealing, West London, was completed in February 2022.
Moorfield has delivered around 5,000 beds through Domain, its PBSA development and operational platform, which was established in 1997.
A further 2,000+ beds are being aggregated through Moorfield’s joint venture with We Are Kin.
Charles Ferguson-Davie, chief investment officer at Moorfield Group, said: “We have been investing in student housing for over twenty years and investor confidence in the sector remains resilient, with domestic and international investors keen to increase their exposure to an undersupplied asset class offering risk-adjusted returns and long-term income streams. We see a market opportunity in new-build development and refurbishment of existing stock, with both strategies responding to investor demand for high-quality assets with leading ESG credentials.”
David Sarson, managing director at Melberry Development Management, added: “We are delighted to have secured this second scheme with Moorfield Group building on the success of Enso, which has received widespread acclaim and is one of the region’s most sustainable PBSA schemes. Our collaborative work has proved a winning formula in the delivery a high-quality product aligned with market needs and requirements.”
Tim Attlee, founder of Funding House Limited, said: “This scheme promises to be another exemplary project from Moorfield and Melberry, and we are pleased to have completed our second transaction in the Zennor partnership. The joint venture has been designed to provide funding solutions to leading residential development partners, enabling the delivery of best-in-class assets in a sector that is central to institutional investment portfolios.”
