Kout Capital LLC (“Kout”) has successfully completed a shariah senior facility with Qatar Islamic Bank (QIB) in the United Kingdom to partially refinance a purpose-built student accommodation (PBSA) asset, Albert Place in Newcastle, UK. The building was acquired in cash on behalf of clients for in excess of £10 million in mid-2018. QIB has granted a facility at 55% of the value of the property for a term of three years on favourable terms given the current market climate with limited availability of debt.
Albert Place is a freehold PBSA scheme with prime qualifications and is located in Newcastle, a Russell Group university city on the River Tyne in northeast England. The property was completed and officially opened in September 2017. Albert Place has modern en-suite bedrooms in clusters of 4, 5, 7, and 8; all sharing an open plan kitchen, dining, and lounge area (in a range of sizes). The property comprises 133 cluster bedrooms and 1 studio apartment together with ancillary facilities. A well-equipped on-site gym, a large common room and a private outdoor landscaped courtyard are all located within the property.
Despite the current Covid-19 pandemic, the property has shown strong performance, highlighting the appeal and strength of the building when compared to average occupancy levels of large national UK PBSA operators.
The property is managed by Universal Student Living (“USL”), who operate from 18 buildings in 10 locations, managing over 2,200 beds on behalf of institutional, private and overseas investors.