Paris Gardens - Student Accommodation


[Part of the UK Social Infrastructure Investment Portfolio]

In July 2012, Tadhamon Capital and Apache Capital Partners completed the acquisition of a prime central London student accommodation development. This US$ 71 million acquisition is a joint-venture with McLaren Property. The development, known as Paris Gardens, is due for completion in late 2013.

Paris Gardens lies within the London Borough of Southwark on the south bank of the River Thames, and is within walking distance of some of the capital’s major universities, including King’s College London and City University. The property will consist of two buildings of 9 and 13 storeys, providing accommodation for 253 students. It will be managed by Victoria Hall, a specialist student accommodation company, with a presence in 14 major cities across the UK.

Starting in the second year of investment, investors will receive quarterly dividend distributions of 6 per cent per annum, rising to 8 per cent the following year, and continuing until the planned exit within a 5-year time horizon. Income is guaranteed by the developers – McLaren Property. The investment is expected to generate an IRR in excess of between 14 and 15 per cent.