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UK: Dominus and Cheyne Capital have secured a £250 million loan from Standard Chartered to fund the ongoing conversion of a former office building at 65 Fleet Street in London into a student accommodation scheme.
The 370,000 square foot, 13-storey scheme will provide 875 student rooms, 35 per cent of which will be offered at rents capped by the mayor of London, alongside social, study, and wellbeing spaces, including private dining rooms, gym, and wellness facilities.
Alongside student accommodation, the development will also deliver cultural space on the ground and lower ground floors, including the restoration and enhancement of the Grade II listed Tipperary pub.
Dominus is also creating new, improved public access to the Grade II listed Whitefriars Crypt, the last remaining structure of the 13th-century Whitefriars Monastery.
With designs to retain 75 per cent of the existing structure, Dominus is targeting a BREEAM Outstanding rating and CRREM alignment for the development.
“London remains a world leader for higher education, with four of its universities ranked in the top 60 globally, yet it has an ongoing structural shortfall of accommodation to meet student demand,” said Preet Ahluwalia, CEO of Dominus. “We are delighted to be partnering with Cheyne Capital and Standard Chartered on this financing, supporting the delivery of a leading student accommodation scheme just minutes from some of the world’s best universities.”
“We continue to see strong opportunity in London’s PBSA market, driven by growing demand for high quality, city centre student accommodation,” said Hamish Gordon, director in Cheyne Capital’s real estate group. “We’re pleased to be working with Standard Chartered and our long-standing partner, Dominus, on a project that will help meet this demand while adding value to the surrounding community.”
“We are delighted to partner with Dominus and Cheyne Capital on the financing of 65 Fleet Street,” said Shane Moore, head of commercial real estate, EMEA, at Standard Chartered. “The scheme is well positioned in a supply constrained central London market, underpinned by sustained demand from one of the world’s leading higher education hubs. This transaction reflects our continued support for high quality developments in the living sector across Europe.”
Eastdil Secured advised on the financing transaction.
Highlights:
- Dominus and Cheyne Capital have secured a £250 million loan from Standard Chartered to support the redevelopment of the former office building at 65 Fleet Street in London into a large-scale student accommodation scheme
- The 13-storey, 370,000 square foot development will deliver 875 student rooms, with 35 per cent of the accommodation offered at rents capped by the Mayor of London
- Planned resident amenities include social and study areas, private dining rooms, a gym, and dedicated wellness facilities
- The project also includes cultural and heritage elements, including the restoration and enhancement of the Grade II listed Tipperary pub and improved public access to the Whitefriars Crypt
- Sustainability targets for the redevelopment include retaining 75 per cent of the existing building structure, alongside ambitions to achieve a BREEAM Outstanding rating and CRREM alignment
