Global lenders back £2.6bn refinancing of student accommodation group
Blackstone has successfully completed the refinancing of a major credit facility for iQ Student Accommodation.
This refinancing, valued at £2.6bn, involves both existing and new lenders, led by Citi and Bank of China, with other participants including Bank of America, Morgan Stanley, Royal Bank of Canada, Standard Chartered, Sumitomo Mitsui Banking Corporation, United Overseas Bank, BNP Paribas, Deutsche Bank, and Crédit Agricole.
Blackstone acquired iQ in May 2020 for £4.7bn, marking the largest private real estate transaction in UK history at that time.
Since then, iQ has expanded its asset base to be one of the largest private providers of PBSA in the UK, with 85 operational properties with 35,000 beds, and an additional 3,000 beds are currently under development. iQ’s portfolio primarily targets high-demand locations, with approximately 90% of its assets by value situated in Russell Group university towns and cities, and more than 50% of its assets by value in London.
In 2023 alone, iQ made strategic acquisitions to further bolster its offering, including properties like Vega in London, The Mont in Edinburgh, Longwood Close in Warwick, Signal Place in Nottingham, and Havannah House in Glasgow.
A Blackstone spokesperson said: “This successful refinancing, with tremendous support from both new and existing lenders, is a reflection of iQ’s strong operational and financial performance, its outstanding management team, as well as its high-quality asset base.”
Several other major refinancings have been completed by Blackstone in recent months. These include:
– Fora: £520m (Q3 2024)
– Mileway: €7.5bn (Q1 2024)
– Fidere: €440m (Q2 2024)
– HIP: €650m (Q1 2024)
– Sponda: €300m (Q4 2023)
– Testa: €1.5bn (Q4 2023)
– Kereby: €912m (Q4 2023)
