Legal & General Investment Management’s UK and European Real Estate Debt division has completed a £150m senior loan with Unite, secured against 10 purpose-built student accommodation assets across key UK cities.
The loan will be used to refinance an existing bank facility for its flagship Unite UK Student Accommodation Fund, which matured in Q1 2024.
USAF is a specialist student accommodation fund with 28,000 beds under management. Established in 2006, USAF sits within the MSCI UK Specialist Fund Index.
Unite Group is the largest shareholder of USAF and acts as asset and fund manager.
The funding follows on from LGIM’s £400m senior loan in July 2023 which was used to refinance a public bond for USAF.
LGIM said rental growth in the sector is supported by supply issues in the conventional buy-to-let residential sector, which would normally offer an option for students.
James Spencer-Jones, head of real estate debt Europe, LGIM, said: “We see continued resilience within the PBSA sector, driven by strong investment and occupational fundamentals.
“This funding delivers both flexibility for USAF while retaining strong structural capabilities and investment characteristics for our investors. The financing continues our pivot into high-conviction subsectors and further growth of LGIM real estate debt’s loan book.”
Send feedback to Akanksha Soni
Follow Estates Gazette
