GCP backs Irish student homes in £18.5m deal

The investment was made by Gravis Capital Partners’ Asset Backed Income Fund, following a recent share issue.

A subsidiary of London-listed Gravis Capital Partners has agreed an £18.5 million ($23.9 million; €21.4 million) debt investment in a student homes complex in Ireland.

The 15-year loan has been secured on a subordinated basis to back the facility in Dublin. Some £15 million of the loan will be drawn immediately, with a further £3.5 million to be drawn down over time. The deal was financed after the fund raised £79.3 million through the issuance of C shares in February.

GCP did not disclose the size of the complex and the identity of the developer. The firm could not be reached before press time.

The debt was provided by GCP Asset Backed Income Fund, despite GCP also being the manager of GCP Student Living, a fund dedicated to student accommodation investment. The firm had previously made investments in the sector in London and most recently in Australia, where it backed a development with £15 million in December.

The latest deal agreed by the fund is in line with its investment restrictions, which prevents more than 20 percent of its backed assets to be based outside the UK. As of the end of last year, the value of its investments stood at £165.2 million across 14 deals since it raised £106 million in an IPO in October 2015.