UK: Global Student Accommodation (GSA) has secured an £86.5 million loan from Investec Bank to refinance five student properties across the UK.
The stabilised portfolio comprises 1,460 beds across London, Nottingham, Newcastle, Sheffield and Lincoln, and is managed by GSA’s global operating partner, Yugo. Two of the assets have recently undergone targeted refurbishments to update the bedrooms and communal spaces.
The transaction is the second between Investec and GSA. An early mover in PBSA since 2011, Investec has lent more than £1.15 billion to the PBSA sector, supporting 24 clients, including Scape, Student Roost and Watkin Jones, with the delivery of more than 22,000 beds across 62 schemes in 26 cities.
Sebastian Walley, loan originator at Investec Real Estate, said: “UK PBSA, where we have a near 15-year lending track record, remains one of our high conviction sectors, and there continues to be strong demand from best-in-class PBSA operators for our tailored financing solutions. Despite economic headwinds, the investment case for UK PBSA remains compelling, driven by global demand for places at our world-renowned higher education institutions. This deal further underscores our confidence in the sector’s resilience, whilst aligning with our strategy to increase our lending volumes by writing more large ticket loans.”
John Jacobs, global head of capital markets at GSA, added: “Investec’s expertise, commitment and focus on supporting high-quality assets and experienced operators make them an ideal partner as we execute our long-term growth strategy. This deal not only reinforces Investec’s position as a leading lender in the PBSA market but also highlights the continued confidence in PBSA as a resilient and attractive asset class.”
