Kley group has secured €132m financing to help rollout its student housing development plans in France.

Kley said it will receive a €105m senior debt from investment bank Natixis, in a pool with financial services firms SCOR and Crédit Foncier de France.

This operation allows the refinancing of properties that are currently owned and operating, to accelerate the development of new properties, and enables the launch of new residence projects which are at negotiation stages, KLEY said.

The maturity of this financing has been extended to 2022. It also allows Kley to apply the financing toward the purchase of new student properties.

Kley said it has also has arranged the first mezzanine financing of a student housing portfolio in France, in partnership with Cheyne Capital, for a total of €27m.

With more than 2,300 beds to be owned by July 2018, and negotiations underway for nearly 3,300 additional beds across France, KLEY and its majority shareholder, funds managed by Oaktree Capital Management, now have the necessary funding in place to strengthen their leadership position in this sector, it said. 

Kley was created by alternative investment management firm Oaktree in 2014.

Jonathan Cally, the chief financial officer of KLEY group, said: “We are delighted in the confidence which has been expressed again by our longstanding partners Natixis, Scor, and Crédit Foncier. Together, Kley and Cheyne Capital have achieved the first mezzanine financing of student housing in France. 

“With this new financial backing, the teams at Kley are accelerating the rollout of their ambitious development plans, and will continue to meet the expectations of the new and of future generations of students.”