Global Student Accommodation (GSA) has attained a £86.5m refinancing loan from Investec Bank. The package will be secured against a portfolio of five stabilised purpose-built student accommodation (PBSA) assets.
The portfolio comprises 1,460 beds across the popular university cities of London, Nottingham, Newcastle, Sheffield and Lincoln, and is managed by GSA’s global operating partner, Yugo. Two of the assets have recently undergone targeted refurbishments to update the bedrooms and communal spaces, catering to the evolving needs of students and supporting their wellbeing during university life.
This transaction is the second between Investec and GSA and reaffirms Investec’s long-standing commitment to the PBSA sector, as well as demonstrating the bank’s ability to provide flexible and responsive funding solutions through the cycle. This new facility increases Investec’s exposure to high conviction sector and aligns with their strategy to underwrite more large ticket loans.
“UK PBSA, where we have a near 15-year lending track record, remains one of our high conviction sectors, and there continues to be strong demand from best-in-class PBSA operators for our tailored financing solutions. Despite economic headwinds, the investment case for UK PBSA remains compelling, driven by global demand for places at our world-renowned higher education institutions.
“This deal further underscores our confidence in the sector’s resilience, whilst aligning with our strategy to increase our lending volumes by writing more large ticket loans.”
Sebastian Walley, Investec Real Estate
An early mover in PBSA since 2011, Investec has delivered over £1.15bn in total PBSA lending. The company has now supported 24 clients, including Scape, Student Roost and Watkin Jones, with the delivery of over 22,000 beds across 62 schemes in 26 cities.
“Investec’s expertise, commitment and focus on supporting high-quality assets and experienced operators make them an ideal partner as we execute our long-term growth strategy.
“This deal not only reinforces Investec’s position as a leading lender in the PBSA market but also highlights the continued confidence in PBSA as a resilient and attractive asset class.”
John Jacobs, Global Head of Capital Markets, GSA
