Athena Hall - Student Accommodation


[Part of the UK Social Infrastructure Investment Portfolio]

In October 2011, Tadhamon Capital acquired a 50% ownership in this property alongside Watkin Jones, a highly-experienced UK real estate developer. Athena Hall is a prime purpose-built student accommodation complex comprising 590 rooms, six retail outlets and a dedicated car park. Located on the campus of University College Suffolk (UCS) in Ipswich, Athena Hall provides the only purpose-built student accommodation in Ipswich, with current demand significantly outstripping supply.

This US$ 41.3 million transaction was co-arranged by Tadhamon Capital and Apache Capital Partners. It was financed through a senior loan and a commodity murabaha facility in a Sharia-compliant tax-efficient offshore investment vehicle. The asset is leased on a ‘direct-let’ basis to students, with a 30-year nomination agreement with UCS, a new university backed by the Universities of East Anglia and Essex. UCS is one of the few universities in UK to have been allowed to increase student numbers, having received increased grant funding in 2010.

The project is currently generating an attractive quarterly net cash yield of 8 per cent per annum, with an expected IRR of between 14 and 15 per cent.