Kinetic Capital, a UK-based PBSA lender, has completed its first loan transaction by providing a £39 mln (€43 mln) whole loan facility to Jensco Group.
The loan will provide finance for the development of a purpose built student accommodation (PBSA) property on Traffic Street in Nottingham city centre. The scheme will provide 522 student bedspaces and is due to be completed for the start of the 2022/23 academic year.
The transaction also marks the launch of Kinetic’s ESG programme. All of Kinetic’s loan facilities will include financial incentivisation for borrowers to deliver on pre-agreed ESG objectives, with a focus on initiatives promoting the positive mental health and wellbeing of student residents.
Steve Grant – Chief Executive Officer, Kinetic Capital said: ‘We are pleased to close our first loan and to be partnering with Jensco Group on this high-quality scheme in a premier higher education market. The sector has proved extremely resilient through the Covid crisis and with student numbers continuing to grow year-on-year, the outlook for the sector remains robust. We expect strong demand for PBSA developments to continue in prime university cities, such as Nottingham.’
Nigel Bobroff– director of Jensco Group, said: ‘Our PBSA scheme in Nottingham will support growing demand as the city continues to be a top destination for domestic and international students. Kinetic Capital’s considerable experience in the PBSA sector was clear when structuring the loan. Partnering with an experienced and flexible financing provider will be extremely valuable as we look to deliver this scheme to the market for the 2022/23 academic year.’
Jensco Group were advised by Knight Frank Capital Advisory on this transaction.
