Investec Real Estate has provided Global Student Accommodation with an £85m loan to support the refinance and partial refurbishment of five UK PBSA schemes.
The assets provide a total of 1,460 beds to students in London, Lincoln, Newcastle, Nottingham (Goldsmith Court, pictured above), and Sheffield, and are managed by GSA’s operating partner Yugo.
Refurbishment will focus on improving bedrooms and communal spaces.
Investment in the UK student accommodation sector totalled a record £7.2bn in 2022, up 69% year-on-year and significantly higher than the long-term average of £4.1bn over the previous five years, according to Knight Frank’s Student Property Report 2023.
Last year, Investec said it had passed the £1bn “lending milestone” in student accommodation, having funded 22,000 beds across 55 schemes in 23 UK cities since 2011.
This is Investec’s first deal with GSA, which is active in nine countries and has a presence in 70 of the world’s leading educational cities.
Investec Real Estate originator of real estate finance Sebastian Walley said: “We will continue to fund PBSA schemes in those cities where the demand dynamics remain compelling, reflecting our conviction in the sector’s long-term outlook due to its structural undersupply, demographic tailwinds and defensive characteristics in this inflationary environment.”
GSA global head of capital markets John Jacobs said: “Completing this refinancing amidst challenging market conditions demonstrates lenders’ confidence in the strength and resilience of the PBSA sector and their continued appetite to support high quality, stable portfolios with experienced owners and operators.”
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