UK: Dominvs Group, a London-based investor and developer, has finalised the UK’s largest ever forward-funding deal for PBSA with operator Scape.
The £173.25 million forward fund will enable the construction of a 713-bed asset in Hammersmith, west London.
Dominvs had previously secured consent for two hotels to be delivered on the site. Due to market conditions as a result of the pandemic, the northern building was no longer viable as a hotel. Dominvs assessed several alternative sectors, which resulted in them taking forward the PBSA scheme following discussions with Imperial College London.
Dominvs achieved support from local residents through its Community Liaison Group which enabled residents to input into the PBSA design alongside architects Rogers Stirk Harbour + Partners (RSH+P). This resulted in a significant reduction of height from the originally consented hotel.
Flexible amenity space at the scheme will include study and seminar space, an onsite gym, a landscaped garden courtyard and space for pop-ups and events.
The site is located close to Imperial College London’s White City campus and there is an intention that 50 per cent of the rooms will be nominated by the University. Other local higher education institutions in proximity to the scheme include The London Academy of Music & Dramatic Art (LAMDA), the White City site of the Royal College of Art (RCA), and West London College.
Preet Ahluwalia, principal at Dominvs Group, said: “It’s a privilege to have worked alongside Imperial, Hammersmith and Fulham Council and the local community who collaborated with us to find real solutions which helped unlock this site and, above all else, worked for local people. The result is a milestone deal for the market with the creation of institutional-grade student housing alongside a new Premier Inn, underpinning our ability to create value across multiple asset classes.”
Adam Brockley, founder and global CDO of Scape, said: “We are delighted to have secured this high-profile site in Hammersmith which will be a superb addition to Scape’s portfolio and allows us to bring our market leading product to west London. Dominvs have secured a fantastic consent and we look forward to working with them on this and other projects in the future.”
Merelina Sykes, co-head of student property at Knight Frank, which advised on the deal, said: “This is a hugely significant transaction for the UK’s PBSA sector. As the largest forward-funding deal to take place in the market to date, it not only demonstrates the real strength of UK student property, but also the need for developers and operators to meet growing demand for accommodation in the capital.
