Kinetic Capital, a specialist lender in the purpose-built student accommodation (PBSA) sector, has teamed up with Kayne Anderson Real Estate (KA Real Estate), the real estate private equity arm of Kayne Anderson Capital Advisors, to launch a new debt funding platform for the European student housing financing market serving PBSA owners, developers and operators in the UK and Europe.
The business, Rhize Capital, aims to deploy an initial $1 bn (€0.9 bn) to the sector over the next two years, providing tailored financing solutions and forging long-term funding partnerships with clients across multiple loans. Rhize will have the capability to make loans of over £100 mln, which will include incentives for borrowers who support the positive mental health and wellbeing of student residents.
The new venture builds on KA Real Estate’s track record in the US student housing market, where the firm has pioneered investing for more than 14 years and expands Kayne’s geographic footprint in the UK and Europe.
The partnership will also benefit from Kinetic’s success in the UK PBSA lending sector and the strategic support of Kinetic co-founder Nicholas Porter.
Rhize will will operate alongside Kinetic’s existing UK focused investment programme.
Steve Grant, chief executive officer and co-founder of Kinetic Capital, commented: ‘The launch of Rhize is an exciting development for the European student housing sector, with our unique ability to provide innovative financing solutions to PBSA owners, developers and operators across the continent. Kinetic and Kanye Anderson are the ideal partners in this new venture, bringing significant financial strength underpinned by deep sector expertise and unmatched pedigree in the student housing debt market globally. PBSA continues to exhibit compelling fundamentals and significant growth potential. We look forward to being the funding partner of choice for a wide range of clients in this dynamic and growing sector.’
David Selznick, CIO, Kayne Anderson Real Estate, commented: ‘We see a significant opportunity to support the growth of student housing in the UK and Europe with a best in class partner that has been investing in the sector for many years. Combined with our deep experience in student housing and building a multibillion dollar debt platform in the US, Rhize will be a differentiated lending platform to provide much needed liquidity to the fragmented debt markets in the UK and Europe.’
