Pension funds provide capital for Royal College of Music accommodation

Pension fund clients of M&G Investments are to provide £36.9 million of finance to redevelop the main student residence for the Royal College of Music (RCM), on Goldhawk Road, London.

M&G has acquired a 125-year long leasehold interest in the 417 student bed property. On completion of the development, it will be leased for 45 years, with annual reviews linked to inflation, to RCM and Campus Living Villages, who will manage the development. M&G Investments director of real estate income, Ben Jones, commented: “This landmark transaction demonstrates the willingness of institutional investors to invest in the growing student accommodation sector – which can be done using a wide range of structures. We are pleased to continue our relationship with CLV following on from our Bournemouth deal last year, and look forward to working with them in the future.”