Investec Real Estate announced this week that it has provided Global Student Accommodation (GSA) with an £85 mln (€97 mln) loan to support the refinancing and partial refurbishment of five UK PBSA assets.
The properties provide a total of 1,460 beds to students in London, Lincoln, Newcastle, Nottingham, and Sheffield, and are managed by GSA’s operating partner, Yugo. Refurbishment activity will focus on improving bedrooms and communal spaces and supporting their wellbeing during their time at university.
2022 saw Investec pass the £1 bn student accommodation lending milestone, having funded 22,000 beds across 55 schemes in 23 UK cities since 2011. This is Investec’s first deal with GSA, which is active in nine countries and has a presence in 70 of the world’s leading educational cities.
Sebastian Walley, Investec Real Estate, commented: ‘We will continue to fund PBSA schemes in those cities where the demand dynamics remain compelling, reflecting our conviction in the sector’s long-term outlook due to its structural undersupply, demographic tailwinds and defensive characteristics in this inflationary environment. GSA is a world-renowned player in the PBSA space and we look forward to supporting them on future opportunities.’
John Jacobs, global head of capital markets at GSA, added: ‘Completing this refinancing amid challenging market conditions demonstrates lenders’ confidence in the strength and resilience of the PBSA sector and their continued appetite to support high quality, stable portfolios with experienced owners and operators. I look forward to continuing to work with the Investec team as we implement our growth strategy in the UK.’
