Viva Commercial Finance Ltd have provided a £28.5 million loan to fund the construction of Constantine College on Heslington East.
The loan has been handed to Student Accommodation Provision Three LLP, a venture between Evans Property Group and the University of York, which will see 600 rooms provided to students at the University.
Graham Gilbert, the University of York’s Finance Director, said: “This transaction secures a balanced underpinning for our portfolio of residential JV investments and will secure an important addition to the stock of high quality residential accommodation already available to our students.”
James Pitt, Development Director at Evans Property Group, added to this, stating: “Having completed the award winning Langwith College in September last year we are delighted to be working again in partnership with the University on the third student college at Heslington East.
“This latest transaction demonstrates our continued approach to providing innovative funding solutions for the delivery of student accommodation.”
Kevin Sale, Commercial Finance Director at Aviva, said: “The funding of this project is another strong addition to our student accommodation lending portfolio. It represents a good long term investment for Aviva and for our annuity customers, and it will benefit the community and local economy of York, with which Aviva has close links.”
Work on Constantine College is in progress, with the project set to be completed in time for students to move into the new accommodation in September 2014.