Aviva Investors has provided a green loan to fund the construction of a UK purpose-built student accommodation (PBSA) scheme being developed by Fabrix and Patrizia.
The loan for the 283-unit scheme in London marks the first PBSA investment made by the Aviva Investors Multi Sector Private Debt Long Term Asset Fund (LTAF) since its launch, following previous investments into the office and logistics sectors.
The 134,000sqft scheme, situated on Walworth Road in Elephant & Castle, is the first project for Fabrix and Patrizia’s London affordable and alternative housing venture. The scheme is expected to be completed in 2028.
Sima Kotecha, head of high yield strategies, real estate debt, at Aviva Investors, said: “London is home to 37 Universities but faces a structural undersupply of student accommodation, particularly across central areas of the city. We are therefore incredibly pleased to fund this scheme at Elephant & Castle, which we expect will be a core asset in one of London’s main PBSA clusters.
“Centrally located, it provides easy access to several of London’s universities and transport networks. It is another example of how we are using investment activity to help the UK get ready for the future, by supporting future talent and creating social value in local communities, whilst also delivering long-term outcomes for investors.”
The transaction also builds on the asset manager’s existing student accommodation lending portfolio, which includes financing for Urbanest.
In September last year, real estate asset manager Patrizia teamed up with developer Fabrix to launch the Sustainable Communities London partnership, focused on repurposing underused urban spaces in London for sustainable, affordable, and alternative housing.
Matthew Weaver, finance director at Fabrix, said: “Fabrix and Patrizia are delighted to be partnering with Aviva Investors to deliver this transformational project. Its backing represents a strong endorsement of the impact strategy of Sustainable Communities London, which aims to deliver ambitious, high-quality and sustainable developments that address the housing crisis while generating meaningful social impact. It also reinforces Fabrix’s position as a trusted development partner for institutional capital.
“As the first development within our joint venture, this scheme sets a strong foundation for a pipeline of future projects, underpinned by a shared ambition to deliver further impact-driven, alternative living schemes across central London.”
Marleen Bekkers, fund manager at Patrizia, said: “This investment reflects Patrizia’s strategy of deploying capital through its pan-European Living platform into high-quality, value-add opportunities in supply-constrained urban markets.
“In this joint venture, we are focused on delivering projects in London that combine strong long-term income potential with measurable social and environmental outcomes.”
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