StepStone Real Estate is investing in UK and Ireland via a newly created partnership with specialist purpose-built student accommodation (PBSA) lender Kinetic Capital.
StepStone Real Estate will provide capital to target at least £200m (€233m) of PBSA loans.
Kinetic said the investment programme will provide finance solutions to PBSA owners, developers and operators across key higher-education markets in the UK and Ireland, covering a range of deal sizes and loan types.
Josh Cleveland, partner and head of StepStone Real Estate’s EMEA business, said: “Establishing this investment programme provides us with exposure to this attractive asset class that has performed strongly through the cycle.
“Kinetic’s sector specialisation and track record were also a compelling draw for us, coupled with its innovative focus on ESG incentives for borrowers. We look forward to working together longer term as this investment programme progresses.”
Steve Grant, Kinetic Capital’s CEO said: “We’re really pleased to close this investment programme with such a high-quality partner and will look to deploy this capital efficiently into our strong pipeline of investment opportunities with leading sponsors. All of our loans continue to include our unique ESG incentives, targeting initiatives to support the mental health and wellbeing of student residents.
“We are also now looking to expand our geographical focus, building upon years of experience in a number of major European PBSA destinations, and hope to close our first investments in mainland Europe over the coming months.”
Kinetic launched a year ago with an initial £100m seed capital for its first specialist debt vehicle, focusing on the UK and Ireland.
At launch, the UK-based company said it will initially focus on the UK and Irish markets, with plans to expand internationally in the near future.
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