UK alternative real estate development, asset and fund manager Curlew Capital has completed a new £44 mln (€51 mln) senior loan with Lloyds Bank Commercial Banking to fund the development of 550 student beds across three purpose built student accommodation (PBSA) schemes, located in Brighton, Bath and Bermondsey, UK.
The three year facility represents the first transaction between Curlew and Lloyds Bank and will support the construction all the way through to stabilisation. The three assets have a gross development value of £135 mln.
Curlew is currently bringing forward six PBSA schemes totalling 1,600 beds across the UK, as it targets the delivery of around 5,000 beds over the next three years.
The operation follows the announcement earlier this month that Curlew had received resolution to grant planning for a 282-room purpose built student accommodation development in Stratford, East London.
Brett Robinson, CFO at Curlew Capital, commented: ‘This transaction is a key milestone in the delivery of our development pipeline. 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.’
Sam Shah, director and alternative residential lead, Lloyds Bank Commercial Banking, added: ‘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.’
Curlew launched its first fund, Curlew Student Trust, in 2013, followed by CST2 in 2018, both of which were backed by clients of CBRE GIP. Curlew has to date committed over £1 bn to the PBSA sector, representing nearly 11,000 beds across 34 schemes in 23 major university markets; a mix of direct developments, refurbishment and forward fundings.
