Select Property Group has secured a £169m finance facility for Vita Student from Lloyds Bank, Wells Fargo and PGIM Real Estate.
The Manchester-based developer has agreed to five-year facilities, with Lloyds Bank and Wells Fargo providing a joint senior facility of £108m and PGIM Real Estate providing the remaining £61m.
KPMG advised Select on its refinancing.
Vita Student’s student accommodation portfolio includes eight operational residences across the UK, with six more in development. It plans to grow to more than 4,000 beds by September 2017.
Simon Mower, lead of real estate debt advisory at KPMG, said: “This significant financing arrangement will provide Select with the capacity and market access to match its significant growth ambitions.
“Securing such a facility not only shows the strength of the company’s business strategy and brand, but is also an indicator of high levels of investor interest and confidence in the UK student accommodation sector.”
