Alternative lender Investec Real Estate has agreed loan facilities with a newly formed joint venture between investors CA Ventures and Harrison Street for the development of four purpose-build student accommodation (PBSA) schemes across the UK.
Financial details were not disclosed.
The four-year facilities will fund projects in prime London, Edinburgh, Leicester and Belfast locations, comprising 935 beds in total.
Approximately a third of the funding has been sold down to Leumi UK, the London-based subsidiary of one of Israel’s largest banks.
Tom Griffiths, Investec, commented: 'The UK PBSA sector remains one of Investec’s conviction calls, despite the near term challenges presented by Covid-19, and is one we anticipate rebounding quickly.
'This belief reflects a number of favourable underlying structural trends, including an expected increase in the number of students entering higher education and the ongoing appeal of UK universities on the global stage.
'Harrison Street and CA Ventures are two increasingly prominent players in the UK PBSA space and we’re excited to be partnering with them again as our loan origination in the sector closes in on £1 bn (€1.15 bn).'
The sustainably-built facilities will incorporate amenities including fitness centres, cinema rooms, outdoor courtyards, games rooms and study lounges. The Edinburgh, Leicester and Belfast schemes are expected to complete for the start of the 2022/23 academic year, with the London property completing 12 months later.
Richard Martin, relationship manager, property finance at Leumi UK commented: 'Financing purpose built student accommodation in prime city locations is a key focus for Leumi UK’s real estate lending activity moving forward. Drawing on a long lasting track record of success in this sector, a syndicated deal such as this fits well with our growth strategy.'
Mark Bladon, head of real estate Lending at Investec added: 'A strategic focus in 2021 for Investec is further expanding its distribution capabilities to allow us to write larger ticket loans.'
Since 2015, Investec has committed over £820 mln of finance, funding a mix of domestic and international borrowers and the development of 19,500 beds across 53 schemes, in 24 university cities.
This deal represents the third time Investec has partnered with Harrison Street and the second time with CA Ventures, the first of which represented the European debut by what is the third largest student housing developer in the US.
