Global Student Accommodation (GSA) has completed a £86.5m refinancing loan with Investec Bank secured against a portfolio of five stabilised purpose-built student accommodation (PBSA) assets in England.
The portfolio comprises 1,460 beds across London, Nottingham, Newcastle, Sheffield and Lincoln, and is managed by GSA’s global operating partner Yugo. Two of the assets have recently undergone extensive refurbishments to update the bedrooms and communal spaces.
John Jacobs, global head of capital markets at GSA, said: “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.”
Sebastian Walley, from Investec Real Estate, added: “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.”
