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£85m PBSA Loan Granted to GSA by Investec

Posted by Calum Martin in

Image courtesy of Flickr, (View licence)

Investec, a banking and wealth management organization, has declared that it will be lending £85m to Global Student Accommodation (GSA), one of the global frontrunners in PBSA, to finance the refurbishment of five of their PBSA properties in the UK.

The refurbishment work will concentrate on enhancing the living quarters and common areas, addressing the changing needs of current students and supporting their well-being during their academic tenure.

Sebastian Walley, on behalf of Investec Real Estate, commented: "We will continue to fund PBSA schemes in those cities where the demand dynamics remain compelling, reflecting our conviction in the sector's long-term outlook due to its structural undersupply, demographic tailwinds, and defensive characteristics in this inflationary environment. GSA is a world-renowned player in the PBSA space, and we look forward to supporting them on future opportunities."

GSA operates in 9 countries and has a presence in 70 of the world's leading educational cities. In the UK, GSA manages five properties located in London, Lincoln, Newcastle, Nottingham, and Sheffield, providing a total of 1,460 beds to students. The properties are managed by GSA's operating partner, Yugo.

In 2021, Investec achieved a significant milestone by surpassing the £1bn mark in student accommodation lending. Since 2011, Investec has financed 22,000 beds across 55 schemes in 23 UK cities.

Investment in the UK student accommodation sector reached a record high of £7.2bn in 2022, representing a 69% increase from the previous year and significantly higher than the long-term average of £4.1bn over the preceding five years.

John Jacobs, Global Head of Capital Markets at GSA. also commented: "I am delighted to have formed this new relationship with Investec. Completing this refinancing amidst challenging market conditions demonstrates lenders' confidence in the strength and resilience of the PBSA sector and their continued appetite to support high-quality, stable portfolios with experienced owners and operators. I look forward to continuing to work with the Investec team as we implement our growth strategy in the UK."