Scotway House – Structured House Group and Harrison Street Real Estate launch Joint Venture
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, a building with links to Glasgow’s shipbuilding past on the north bank of the Clyde, 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.”
The joint venture is part of a major expansion plan by SHG which aims to create a development portfolio worth £1billion by 2023.
The joint venture will target SHG’s £500m student accommodation and Private Rented Sector (PRS) development pipeline. The developer will source land and gain planning permission as well as developing and operating the assets.
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.
“We have created a large development portfolio across the UK and will be growing it at pace over the next five years.”
He added: “We’re already on site with the first asset and we have two further assets in the pipeline, a mix of student and co-living. In the next six months, we will announce our first move into other parts of Europe, which will be another milestone.”
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.