UK student housing investor Fusion Group has secured a £500m (€582.7m) loan from pan-European real-estate financier Maslow Capital.
Fusion Group said the whole-loan facility will finance five projects in Birmingham, London, Loughborough, Glasgow and Cardiff, which together will provide 3,138 purpose-built beds.
Ellis Sher, co-founder and CEO at Maslow Capital, said: “We remain fully committed to supporting developers of all sizes who are making a much-needed difference to the supply of new accommodation across the UK and Europe.
“By providing £500m of long-term capital, Maslow is helping Fusion turn plans into bricks and beds efficiently and at scale. We look forward to supporting Fusion and continuing to strengthen our long-term relationship.”
Sky Mapson, senior director, origination at Maslow Capital, said: “In a market where demand continues to outstrip new supply, the fundamentals for well-located, purpose-built student accommodation remain exceptionally strong.
“Structuring a single £500m facility across five projects allowed us to provide Fusion with the financial firepower to deliver their ambitious pipeline. We’re proud to back a partner of Fusion’s calibre and to demonstrate Maslow Capital’s ability to deploy substantial capital into high-conviction sectors at scale.”
Daniel Harris, CIO at Fusion Group, said: “In a challenging market, there remains substantial opportunities for those with conviction and depth of expertise across the development, operating and capital markets mix.
“This landmark deal is a testament to the attractiveness of the UK’s living sectors and, in particular, the purpose-built student accommodation market in which Fusion has built a successful track record.”
Nigel Henry, co-founder and CEO at Fusion Group, said: “Securing one of the UK’s largest ever living sector development loans demonstrates the quality of our product and team.
“This is the latest milestone in Fusion’s continuing growth as a developer and long-term owner and operator of assets.”
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