Cash secured for student flats

Ziggurat Student Living has won a £1.9 million equity placing to fund a 59-bedroom project in Cowgate.

The company, launched by Jim Pike and Matt McAdden, plans to develop 24 flats at Wellgate House with senior debt provided by Santander and a group of individuals contributing between 50,000 and 250,000.

Mr McAdden said: "This has been more complicated than securing equity from a single source but confirms the strength of private investor interest in the student sector and at the end of the day we were oversubscribed for this asset."

The building should be bought by the end of the month and the 2m construction project is expected to begin by the end of October.

Mr Pike said: "With the redeveloped building planned to be complete by June 2011, Ziggurat will be able to capitalise on the Festival letting opportunity as well as comfortably meeting first student lettings.

"Ziggurat has a further Edinburgh project in contract and hopes to be able to complete that transaction in November."