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Student developers secure £250m loan to convert former London office into 875 homes
Developers Dominus and Cheyne Capital have secured a £250m loan to fund the conversion of a former office in central London into an 875-bed student accommodation scheme.
Developers Dominus and Cheyne Capital have secured a £250m loan to fund the conversion of a former office in central London into an 875-bed student accommodation scheme #UKhousingThe joint venture secured the financing for its 65 Fleet Street development from British bank Standard Chartered.
The 13-storey scheme will provide 875 student rooms, 35% of which will be offered at affordable rents capped by the mayor of London, alongside private dining rooms, a gym and wellness facilities.
The site is within reach of King’s College London, the London School of Economics and University College London.
Alongside the purpose-built student accommodation (PBSA), the development will provide cultural spaces on the ground and lower ground floors, including the restoration of the Grade II-listed Tipperary pub, London’s oldest Irish pub.
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Dominus is also creating improved public access to the Grade II-listed Whitefriars Crypt, the last remaining structure of the 13th-century Whitefriars Monastery.
The retrofit-first development will retain 75% of the existing office structure and is targeting a BREEAM (Building Research Establishment Environmental Assessment Method) Outstanding rating.
Dominus secured Gateway 2 approval from the Building Safety Regulator last year, with construction now underway by main contractor HG Construction. The scheme is due to complete in summer 2028 and be open to students for the 2028-29 academic year.
Once complete, it will form part of Dominus’ operational student portfolio, which includes 2,300 beds currently being delivered across three central London locations: 65 Fleet Street, 65 Crutched Friars and 65 Holborn Viaduct.
Preet Ahluwalia, chief executive of Dominus, said the financing supports “the delivery of a leading student accommodation scheme just minutes from some of the world’s best universities”.
Hamish Gordon, director in Cheyne Capital’s real estate group, said: “We continue to see strong opportunity in London’s PBSA market, driven by growing demand for high-quality, city-centre student accommodation.”
He added that the project “will help meet this demand while adding value to the surrounding community”.
Shane Moore, head of commercial real estate (EMEA) at Standard Chartered, said: “The scheme is well positioned in a supply-constrained central London market, underpinned by sustained demand from one of the world’s leading higher education hubs.
“This transaction reflects our continued support for high-quality developments in the living sector across Europe.”
Eastdil Secured advised on the financing transaction.
Last month, private equity giant Blackstone completed a £562m refinancing of nine UK student accommodation schemes.
IQ Student Accommodation, Blackstone’s student housing company, secured the financing with Japanese bank Mitsubishi UFJ Financial Group to support the upgrade and refurbishment of nine student accommodation sites across the UK, in cities such as Glasgow and Brighton.
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