Kinetic Capital, a new, specialist lender in the purpose-built student accommodation (PBSA) sector has launched in the UK with an initial commitment of £100 mln (€110 mln).
The platform is led and co-founded by Steve Grant, ex CEO of Global Student Accommodation Group (GSA) and Nicholas Porter, founder and chairman of GSA. Combined, they boast nearly 50 years of experience in the PBSA sector.
According to the firm, Kinetic Capital will offer a range of financing options including whole loans, mezzanine debt, bridging finance and preferred equity, lending against development or investment properties. The business has already secured seed capital for its first specialist debt vehicle, focusing on the UK and Ireland.
Grant said: 'As the only specialist PBSA lender, Kinetic Capital has an unrivalled ability to assess and underwrite PBSA transactions. The business already has a strong pipeline and we are also seeing good demand from investors looking to gain exposure to a focused debt vehicle with an expert manager.
'The resilience of higher education continues to underpin the PBSA market, providing for strong demand and growth in the sector. Investor appetite for secure, high yielding revenue streams supported by the growing global student population, translates to a positive outlook.'
Kinetic Capital will target PBSA owners, developers and operators. The business will be based in the UK and will initially focus on the UK and Irish markets, with plans to expand internationally in the near future.
Grant added: 'Market conditions combined with the robust nature of PBSA, present a clear opportunity for our strong team to scale the business, using its unique position to deliver significant value to both borrowers and investors.'
Said Porter: 'We are a global pioneer in PBSA and a trusted partner to leading debt and equity providers in the space. We see Kinetic Capital as a natural extension to our core capabilities, allowing us to build upon our deep sector relationships and strengths in the market, and we are excited about the opportunities ahead.'
Grant and Porter announced their departure from GSA at the start of July, when the firm's new CEO, Will Rowson, was unveiled.
