PGIM Real Estate has secured £20m of financing from HSBC UK for the refurbishment of six purpose-built student accommodation (PBSA) sites across the UK.
The assets total 2,948 beds and the rolling refurbishment programme will modernise each site, providing high-quality, modern PBSA for students and a user-friendly living style with lounges and study spaces..
The portfolio includes Jennens Court in Birmingham (596 beds), North Court in Cardiff (253 beds), The Grange in Leicester (219 beds), Prospect Point in Liverpool (635 beds), St Peter’s Court in Nottingham (808 beds) and Exchange Works in Sheffield (437 beds).
PGIM Real Estate acquired the sites from Unite Group plc in 2024 for £184m in a deal also backed by HSBC UK. The acquisition of the sites was made on behalf of PGIM Real Estate’s European core plus strategy.
The refurbishment programme – starting with North Court in Cardiff – will enable material improvements to sustainability and energy efficiency via initiatives including passive measures (building fabric) that minimise the energy demand, refurbishment of plant to provide more energy efficient services, and the introduction of on-site renewable energy sources.
Once all refurbishments are complete, which include the removal of gas central heating, the portfolio will be 100% electric and will use green electricity sources. PGIM will also ensure that all the buildings have an EPC B or above rating.
“In a market which is dominated by brand new buildings, we recognised PGIM Real Estate’s innovative approach. We fully engaged with the PGIM team to develop a new financing approach for the sector that allowed the business the flexibility to acquire the portfolio and undertake the necessary work.”
Kevin Dawson, Relationship Director, HSBC UK
PGIM Real Estate’s European core plus strategy targets Europe’s most liquid markets, allocating to sectors benefiting from structural trends driven by digitalisation, changing demographics and decarbonisation.
Focusing on these high-conviction themes, the strategy will invest in sectors such as last mile logistics, residential including rental, senior and student housing.
