Real estate investment manager Tokoro Capital has secured a £27.35m loan from Leumi UK to grow Homie – its student housing platform, with future scope to increase the facility to £50m. The financing will re-capitalise Tokoro Capital’s existing 535-bedroom portfolio alongside supporting future acquisitions.
“The support of Leumi UK is a testament to our investment thesis, and the operating expertise of our dedicated student management platform, Homie.”
Max Bassadone, Partner, Tokoro
The loan marks the first transaction between Leumi UK and Tokoro Capital. It also represents Tokoro Capital’s third successful debt raise this year.
“This transaction is a further example of Leumi UK’s relationship driven approach and commitment to delivering bespoke financing solutions for our customers.
“This is a high quality portfolio managed by a specialist operator and, given the market for domestic second- and third-year students has been largely overlooked to date, these assets have a strong future. We look forward to working with Tokoro as it implements its strategy.”
Oliver Stenning, Relationship Director, Leumi UK
Tokoro Capital’s student platform is managed by Homie – a specialist student housing operator which was created and funded by the company.
Founder Tom Ferber launched Homie with the mission to create ‘student homes, not housing’. It aims to raise the standard of student homes within the industry by modernising tired buildings and by delivering newly refurbished, well designed and sustainable homes for students to share.
“Building and operating a portfolio of well-located, granular student assets is not easy. We’ve spent years curating the operational ‘special sauce’ and, with the support of Leumi UK, we’re firmly past the ‘proof of concept’ stage.
“As the environmental standard changes we continue to drive ‘mom and pop’ landlords out of the market; we’re now ready to really scale and institutionalise this sector.”
Tom Ferber, Founder, Homie
Greenberg Traurig and Mourants acted as legal counsel to Tokoro Capital on this financing transaction, with Eversheds Sutherland and Walkers acting as legal counsel for Leumi UK. Trowers Hamlin and Russell-Cooke advised on the real estate aspects of the deal.
“There was good lending appetite across the UK clearing banks and others, but Leumi stood out. Their commitment to growing with us, deep understanding of our industry, and close collaboration to tailor a solution around our specific needs made all the difference.”
Sanjay Sethi, Founder and Partner, Tokoro Capital
