Dominus announce completion of two senior loans with Cheyne Capital for student accommodation developments in the City of London
Dominus, a leading real estate investor, developer and asset manager in the hotels and living sectors, and Cheyne Capital Management (UK) LLP (“Cheyne Capital”), the global alternative asset manager, today announced the completion of two senior loans totalling circa £400 million to provide development finance for two of Dominus’ purpose-built student accommodation developments in the City of London.
The first facility will support a development in Holborn, situated within close proximity of several leading London universities including The London School of Economics and Political Science, Kings College London and Queen Mary University of London. It will consist of 669 beds, with over 35% allocated as affordable accommodation and 64 rooms as wheelchair accessible.
The development will deliver wider benefits for Londoners, with a mix of cultural and affordable workspace for creative businesses to be leased free of charge by the Creative Land Trust (CLT), a new viaduct connecting Holborn Viaduct and Snow Hill, and free public access to a roof terrace with incredible views over the City of London.
A second loan will fund a development in the heart of the City of London, situated at 65 Crutched Friars between Aldgate and Tower Hill, which will consist of just under 800 beds, of which 35% will be affordable. In terms of public benefits, the development provides a new long-term home for the Migration Museum in a three-floor 30,000sqft free-to-enter space, thanks to a 60-year lease granted by the Ahluwalia family, with no rent or service charge payable, alongside a new pocket park.
The schemes, which have a combined GDV of circa £800m, will be developed and operated by Dominus. They are also examples of the City of London Corporation’s ‘Destination City’ initiative in action, transforming the Square Mile into a seven-day-a-week visitor destination through the creation of new attractions, while also drawing in top students and future talent from across the country and the world.
In line with the latest ESG thinking, Holborn and 65 Crutched Friars are designed to be low energy in operation, making the full use of energy and water-saving technologies, onsite renewables (PV and air source heat pumps), and low carbon community infrastructure. Both projects combine low carbon objectives with healthy living principles, including extensive biophilia applications and planting, green roofs, natural materials, improved building and local air quality, and natural lighting. Further highlighting sustainability credentials, 65 Crutched Friars is targeting BREEAM ‘Outstanding’, making it one of the first new student developments in London to do so, with the Holborn scheme targeting BREEAM ‘Excellent’.
“Student accommodation is in very short supply across the UK, so completing these deals is a significant milestone that will facilitate the delivery of over 1,500 units in the heart of London. Importantly, 500 of said units will be available at affordable rents, enabling future generations from all backgrounds to benefit from them.
These two assets form part of our pipeline of over 5,000 student units across key university towns in the UK, including Bristol, Manchester and Glasgow. Thanks to the unique professional strength of our development and asset management teams, we are building a market-leading portfolio that addresses national supply and demand imbalances, working in partnership with local governments and communities to deliver highly impactful, meaningful public benefit.
Drawing on a decade of experience in creating hotels that locals and our guests love, we will create an innovative and inclusive experience for students which we hope will maximise their progression as they move through their careers. We look forward to delivering these schemes with our partners Cheyne Capital and working alongside the City of London Corporation to help deliver on their bold Destination City vision.”
“With the UK government’s commitment to enrol 600,000 international students by 2030, student accommodation continues to be a resilient asset class, and we see an ever-growing demand for high-quality, well-located student living options. That is why we are pleased to be partnering with Dominus to deliver two developments in the heart of central London which will not only provide a first-class experience for students, but also stand to deliver benefits to the wider community.”
“We’re delighted that the developers have been able to make such a generous contribution to the Square Mile’s cultural offer, providing a new home for the Migration Museum, in addition to the much-needed student accommodation and green space.”
These projects are examples of our Destination City vision in action, bringing us closer to our goal of transforming the Square Mile into a thriving and vibrant seven-day-a-week leisure destination for international and UK visitors, workers, and residents while also attracting world-class students and future talent.”
