Unite Group, which develops and manages student accommodation, has acquired a zone 1 site in Camden, North London, from Travis Perkins, to which it will provide a new trading facility once the development is complete.
The transaction cost Unite £23.8m with funding provided by HSBC.
Unite secured planning permission for the building in August of last year, allowing it to build a range of cluster apartments and spacious studios. Construction of the 563-bed balance sheet scheme will begin in December 2012 and the property will open in 2014.
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Richard Simpson, UNITE's Managing Director of Property, said: "Camden Town is the top London location for students and this scheme will provide rare, zone 1 cluster flats at affordable rents.
"This site purchase marks a further milestone in our target to expand our presence in the key London market, substantially. We expect London to continue to benefit from strong market fundamentals, with the supply/demand imbalance still a key factor, and we expect it to remain the most attractive and thereby resilient destination for UK and international students."
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