- The loan is to Clearbell Property Partners III LP (Clearbell), a fund managed by Clearbell Capital LLP;
- The capital will be used to acquire six purpose-built student accommodation (PBSA) properties in Aberdeen and to refinance a student village in Southampton, totalling over 1,800 beds;
- The sites will be managed by Iceni Property Asset Management, which has a proven track record of delivering and managing good value, quality student accommodation schemes across the UK;
- As the UK saw its total full-time student population grow by 8% in 2020/21[1], Aberdeen and Southampton are now home to over 32,750 students across their four universities, heightening the need for more PBSA units.
OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has provided a £36M business loan to Clearbell.
The capital from OakNorth Bank will be used to fund seven PBSA sites in the popular student cities of Aberdeen and Southampton, offering over 1,800 bedrooms for residents. Six of the seven sites, offering a total of 1,050 bedrooms, are located in Aberdeen and are situated in close proximity to both the University of Aberdeen and Robert Gordon University. The Southampton site, named Lucia Foster Welch, offers residents 809 bedrooms, across six separate buildings and is situated next to the city’s popular Ocean Village. Recently fully refurbished by Clearbell, the site is located a short walk from Solent University and only four miles from the University of Southampton’s main campus.
All sites will be managed by Iceni Property Asset Management, which has a proven track record of delivering high-quality student accommodation schemes across the UK. Set up in 2018 by Founding Director and CEO, Matthew McAdden, the firm delivers reliable development management, property management, and asset advisory services in the student accommodation sector.
Matthew McAdden, Founding Director and CEO of Iceni Property, commented on the transaction: “The assets in Aberdeen and Southampton are in excellent locations for students attending the city’s four main universities, and we fully expect demand for them to be high. With student numbers increasing across the board, the team will be playing an important role in managing highly sought-after PBSAs in two of the UK’s popular student destinations. We have extensive experience in managing student accommodation in the university sector, and this same level of expertise was reflected by the team at OakNorth in regard to their lending approach”
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank, added: “Clearbell is a strong business with ambitious plans for the future. Its funding requirements gave us another opportunity to once again work with a high-quality institutional investor, as well as a very experienced student operator in Iceni Property. The student accommodation sector was heavily impacted by the COVID-19 pandemic, however, we’re now seeing large university towns and cities bouncing back strongly, following evidenced uptake for the coming student year, as the market returns to normal with in-person lectures and seminars. We look forward to working closely with Matthew and his team on future projects moving forward.”
ENDS
Notes to editors
[1] Savills – Market in Minutes: UK Student Accommodation – Q1 2022
About OakNorth Bank plc
Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.
Since its launch, the bank has:
- Lent over £8.4B, directly helping with the creation of 36,000 new jobs and 25,000 new homes across the UK.
- Raised deposits from c.160,000 savers.
- Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Contact
Tom Pavey-Smith, Associate Director, Growth & Communications – [email protected] / [email protected] / 0791 716 5588