Blackstone has announced they have successfully closed on the refinancing of one of the major credit facilities of iQ Student Accommodation. The refinancing is part of the normal course of business ahead of the current facility reaching maturity in May 2025.
Blackstone acquired iQ in May 2020 for £4.7bn, which at the time was the largest ever private real estate transaction in the UK.
A collection of lenders have clubbed together to write huge loan. The £2.6bn facility is being originated by a combination of existing and incoming backers. The deal has been led by Citi and Bank of China, the lenders include Bank of America, Morgan Stanley, Royal Bank of Canada, Standard Chartered, Sumitomo Mitsui Banking Corporation, United Overseas Bank, BNP Paribas, Deutsche Bank and Crédit Agricole.
iQ is one of the largest providers of private purpose-built student accommodation (PBSA) in the UK and has a high-quality asset base, with 85 operational properties comprising 35,000 beds and an additional 3,000 beds under development.
Approximately 90% of iQ’s assets by value are located in Russell Group towns and cities where student demand is highest, with over 50% of value in London.
The capital is one of the UK’s most vibrant and popular university destinations for students, including international students, with demand for PBSA exceeding the supply of private PBSA beds by a factor of eight.
“This successful refinancing, with tremendous support from both new and existing lenders, is a reflection of iQ’s strong operational and financial performance, its outstanding management team, as well as its high-quality asset base.”
Blackstone spokesperson
The total accretive and development capex invested in iQ since Blackstone’s acquisition amounts to over £280m. In 2023, iQ announced a series of student housing acquisitions, Vega (London) / The Mont (Edinburgh), Longwood Close (Warwick), Signal Place (Nottingham) and Havannah House (Glasgow).
In July, their highly-anticipated PBSA development in Glasgow’s city centre topped out, reaching full height at 36 metres. The Bath Street PBSA scheme is being delivered by GRAHAM Building North.
