UK real estate investor Curlew Capital has secured a £44m (€51m) loan with Lloyds Bank Commercial Banking to help fund student housing development projects.
Curlew Capital said the three-year senior loan will fund the development of a 232-bed scheme on London Road in Brighton, a 138-bed development in Bath and a 185-bed scheme Bermondsey. The three schemes are being developed for £135m.
The facility, which represents the first transaction between Curlew and Lloyds Bank, will support the construction of the purpose-built student accommodation (PBSA) all the way through to stabilisation.
Brett Robinson, CFO at Curlew Capital, said: “In Lloyds Bank, we have a partner that shares our conviction in the sector’s favourable outlook, and who have a long track record of funding successful student accommodation schemes across the UK.
“As important, they are also aligned with our commitment to deliver highly sustainable buildings which contribute to the ecosystem of their local community.
“Despite the well-publicised headwinds faced last year, the longer-term fundamentals for the PBSA sector remain highly compelling, with reservation rates for the upcoming academic year providing further evidence of the sector’s resilience.”
Sam Shah, director and alternative residential lead, Lloyds Bank Commercial Banking, said: “We are excited to be initiating a lending relationship with Curlew through the financing of three high-quality PBSA assets and in doing so to continue our support for the student economy.
“Whilst the UK PBSA sector has experienced some stress as a direct consequence of the pandemic, the broader investment thesis is still in favour of high-quality stock in markets where there continues to be a demand/supply imbalance. We look forward to working with the management team as they continue to grow its portfolio.”
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