Cerberus Capital Management has provided a £66.2m (€75.4m) loan to help fund two projects being developed by Partners Group and Host Student Housing UK student housing and co-living investment venture.
Back in June this year, Partners Group and Host created the £1bn joint venture has been seeded with two Host-owned operational purpose-built student accommodation (PBSA) assets, a PBSA development project in Bournemouth and a purpose-designed co-living development project in Guildford.
At the time, the pair said partnership also has a pipeline of over £250m of PBSA developments totalling more than 1,000 beds in the prime Russell Group university markets of Manchester, Bristol, Edinburgh and Birmingham.
Partners Group and Host said they have now secured loan facilities from an affiliate of Cerberus to finance a PBSA development in Bournemouth of 206 beds and a co-living development of 301 studios in Guildford with completion expected for summer 2023 and summer 2024, respectively.
Peter Holden, managing director, and co-head of real estate asset management at Partners Group, said: “We are pleased to agree development finance with Cerberus as we continue to expand our UK PBSA platform with Host to develop high quality, energy efficient, and amenitised housing for students and young professionals.”
John Nesbitt, managing director at Host, said: “We are very pleased to agree this loan facility with Cerberus and look forward to delivering these exciting projects in Bournemouth and Guildford.
“There is a strong appetite in the finance market from lenders for good quality alternative residential assets such as these two well-located schemes, delivered by developers and investors with a proven track record, such as ours.”
Daniel Dejanovic, the head of European real estate at Cerberus, said: “This is a great opportunity to support what will be a top-quality, sustainable living platform.
“These two projects are in desirable locations and will meet the strong and growing demand in the student housing sector.”
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