Investing in Student Housing: A Lucrative Opportunity

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Moorfield Group, a UK real estate fund, is putting up £42 million to finance a student housing project in Lincoln. The project, which is a 293-bed purpose-built student accommodation (PBSA) scheme, is being developed in partnership with Melberry Developments in the East Midlands. This is the second time Moorfield has teamed up with Melberry, following their successful collaboration on a University of Essex PBSA development in Colchester.

The funding for this project comes from Moorfield Real Estate Fund (MREF) V, the fifth value-add UK real estate fund managed by Moorfield. This fund has also been involved in other projects, including an 81-home co-living scheme in Ealing, West London.

Charles Ferguson-Davie, the CIO at Moorfield Group, expressed confidence in the student housing sector, citing strong investor interest in this undersupplied asset class. He highlighted the market opportunity in new-build development and refurbishment of existing stock, both of which align with investor demand for high-quality assets with leading ESG credentials.

David Sarson, managing director at Melberry Development Management, praised the collaboration with Moorfield Group, emphasizing the success of their previous project, Enso, and its positive reception in the region. He also highlighted their commitment to delivering high-quality products that meet market needs and requirements.

Tim Attlee, founder of Funding House, also expressed satisfaction with the partnership, describing it as a means to provide funding solutions for leading residential development partners and deliver best-in-class assets in a sector that is central to institutional investment portfolios.

The project in Lincoln is expected to be another exemplary venture from Moorfield and Melberry, reflecting their dedication to high-quality development. With this, the Zennor partnership continues to provide funding opportunities for top-tier residential developments, contributing to the growth of this important sector.

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