The developer Select Property Group has managed to secure £169m in credit facilities, which will be used to fund growth in its student accommodation brand.
The five-year finance facility has been secured through a combination of Lloyds Bank, Wells Fargo and PGIM Real Estate. The funds will be used to expand into new cities whilst enabling the company to take a build to hold strategy, rather than retailing individual buildings to investors as it has done before.
The credit facilities include a £108m senior development and investment facility, equally split between Lloyds Bank and Wells Fargo, and a £61m junior facility provided by PGIM Real Estate.
According to CEO, Mark Stott, the securing of the credit facility will enable the company to expand into more university cities whilst also allowing the business to retain the assets.
Select Property Group also recently appointed Michele Steel, former head of Deloitte Real Estate. She will oversee the planning stages of the entire Select portfolio, which includes The Vita Student, CitySuites and Affinity Living Brands.