Student accommodation provider bags £86m refinancing loan for five-asset portfolio

Investec Bank has provided an £86.5m refinancing loan for a portfolio of five purpose-built student accommodation (PBSA) assets in key university cities across England.

The portfolio, which is managed by Global Student Accommodation’s (GSA) global operating partner, Yugo, includes 1,460 student beds across London, Nottingham, Newcastle, Sheffield and Lincoln.

As part of the refinancing deal, two of the properties have been refurbished to upgrade bedrooms and communal spaces.

Sebastian Walley, 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.”

The news marks the second deal between Investec and Global Student Accommodation, with Investec having provided over £1.15bn in financing to PBSA projects since 2011, supporting the development of more than 22,000 student beds across 62 schemes in 26 UK cities.

John Jacobs, global head of capital markets at GSA said: “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.”