Investec Bank has strengthened its partnership with Global Student Accommodation (GSA) by providing an £86.5m refinancing loan secured against a portfolio of five purpose-built student accommodation (PBSA) assets in England.
The deal increases Investec’s exposure to the high-demand PBSA sector and aligns with its strategy to underwrite larger ticket loans.
The refinancing facility covered 1,460 student beds across five key university cities, including London, Nottingham, Newcastle, Sheffield, and Lincoln.
The assets are managed by GSA’s global operating partner, Yugo.
As part of the deal, two properties underwent targeted refurbishments, enhancing bedrooms and communal spaces to meet the evolving needs of students and support their wellbeing during university life.
This transaction marks the second deal between Investec and GSA, demonstrating the bank’s ongoing confidence in the PBSA sector.
Since 2011, Investec has delivered over £1.15bn in total lending to the PBSA sector, supporting 24 clients, including Scape, Student Roost, and Watkin Jones.
Its financing has facilitated the development of more than 22,000 student beds across 62 PBSA schemes in 26 UK cities.
Sebastian Walley, Investec Real Estate, said, “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.”
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.”
