Commercial Finance Specialists

Mansion Group's Student Accommodation Fund has made its first acquisition with the purchase of St Andrews Gardens.

The Mansion Group's Student Accommodation Fund has completed its first property investment following its launch last year.

St Andrews Gardens development investment has been acquired by the fund at a discount on market value, enabling the initial yield of seven per cent.

Sources of finance for the purchase have been provided through independent financial advisers and debt funding from Barclays, which has supported all Mansion Group acquisitions to date.

The development is comprised of 421 beds across 96 flats, with the fund having secured a five-year rental undertaking and refurbishment commitment from the Mansion Group.

Commenting on the acquisition, business development director at the group Mark Stubbs said: "When we were first considering student accommodation we were immediately struck by the investment potential.

"As an asset class it is possibly best placed to endure the economic downturn affecting other property classes such as retail and commercial, largely because of the ever-increasing numbers of students heading into higher education, both from at home and abroad."

Meanwhile, Target Group's Geraint Chamberlain told Mortgage Strategy earlier this week that commercial lending by banks is set to be constrained this year.