Purpose-build student accommodation (PBSA) developer-operator Fusion Group has secured a £500m whole-loan facility from Maslow Capital to fund the delivery of five PBSA schemes.
The schemes, which are located in Birmingham, London, Loughborough, Glasgow (pictured) and Cardiff, will deliver 3,138 beds and are scheduled for completion between 2027 and 2028.
The PBSA schemes will feature an extensive array of amenities, including dedicated study spaces, fully equipped fitness and wellbeing zones, private dining facilities and expansive landscaped outdoor areas.
Daniel Harris, chief investment officer at Fusion Group, said: “In a challenging market, there remains substantial opportunities for those with conviction and depth of expertise across the development, operating and capital markets mix. This landmark deal is a testament to the attractiveness of the UK’s living sectors and, in particular, the purpose-built student accommodation market in which Fusion has built a successful track record.
“The UK remains a deeply attractive market both to institutional capital and, with the support of Maslow, we look forward to building out these five schemes into best-in-class assets at the cutting edge of what students want and what investors need from their real estate projects. It’s a pleasure working with a genuine partner in the shape of the team at Maslow and we look forward to collaborating with the team going forward.”
Nigel Henry, co-founder and CEO of Fusion Group, added: “Securing one of the UK’s largest ever living sector development loans demonstrates the quality of our product and team. This is the latest milestone in Fusion’s continuing growth as a developer and long-term owner and operator of assets.”
Ellis Sher, co-founder and chief executive officer of Maslow Capital, said: “We remain fully committed to supporting developers of all sizes who are making a much-needed difference to the supply of new accommodation across the UK and Europe. By providing £500m of long-term capital, Maslow is helping Fusion turn plans into bricks and beds efficiently and at scale. We look forward to supporting Fusion and continuing to strengthen our long-term relationship.”
Sky Mapson, senior director, origination at Maslow Capital, added: “In a market where demand continues to outstrip new supply, the fundamentals for well-located, purpose-built student accommodation remain exceptionally strong. Structuring a single £500m facility across five projects allowed us to provide Fusion with the financial firepower to deliver their ambitious pipeline. We’re proud to back a partner of Fusion’s calibre and to demonstrate Maslow Capital’s ability to deploy substantial capital into high-conviction sectors at scale.”
Maslow Capital was advised by DLA Piper on the transaction and Fusion was advised by HSF Kramer.
