Harrison Street Real Estate Capital has agreed to a joint venture with Glasgow-based Structured House Group (SHG) and closed on their first joint investment: a student accommodation scheme for the city with a £40m GDV.
Work has already started on the development of the site at Scotway House that will provide approximately 400 student beds. The development will also include two restaurants, a library, study rooms, screening rooms, private dining, and a co-study area.
Land on the Scotway House site was purchased at the start of December 2017 with work due to be completed by September 2019. The first intake of students from Glasgow universities is expected to be for the 2019 academic year. The development will be owned by the joint venture and managed by SHG’s BOHO brand.
Robert Mathias, a Senior Managing Director and Head of International at Harrison Street, said: “We are excited to enter into a long-term partnership with Structured House Group to bring much-needed, high-quality student accommodation to the city of Glasgow and other attractive markets.
“As one of the largest investors in student housing, we look forward to bringing our significant resources and experience to bear for the benefit of our partners and investors.”
Craig Inglis, Chief Executive of SHG, said: “We are proud of our joint venture with Harrison Street and are very excited about what it means to our businesses going forward.
The debt is provided by RBS, with Harrison Street and SHG providing the equity investment. BFIN, formerly Brookfield Financial, acted as financial advisor and Lindsays LLP was legal advisor. DLA Piper was legal advisor to Harrison Street and Brodies LLP was advisor to RBS.