KKR agrees PBSA forward-funding deal

Investment firm KKR has agreed a forward-funding deal for a purpose-built student accommodation asset near the University of Warwick in Coventry. The Progress House scheme, under development by Gilltown and general contractor Winvic, is scheduled to complete in the summer of 2027, before the start of the academic year.   The scheme  involves the demolition of an existing office building and will deliver accommodation for 544 students across a mix of four-to-six bed cluster flats and studios. It will target a BREEAM Excellent rating and a WiredScore Platinum certification. The development will include amenities such as a gym, fitness studio, cinema, dinner party room, games lounge, study rooms and garden lounge. Seb d’Avanzo, managing director and head of real estate acquisitions for KKR in Europe, said: “We’re pleased to grow our student housing portfolio with Inhabeo by investing in this strategically located development scheme which is transforming a vacant office space into a vibrant student community to address the University of Warwick’s need for more residential accommodation. This investment underscores the strength of our conviction in providing high-quality living spaces in undersupplied markets that enjoy resilient demand from top universities.” James Gillespie, development director at Gilltown, said: “Collaborating with KKR and Inhabeo on this latest exciting project is an important step for Gilltown and we’re very pleased to be working alongside Winvic Construction to deliver it.” Ross Netherway, chief executive of Inhabeo, added: “We’re delighted to add to our European living sector investments alongside KKR through this off-market transaction. Gilltown and Winvic have proven track records and we look forward to delivering this development with them.”