Partners Group & Host Student UK JV Secure £66m Loan

A joint venture between Host Student Housing and Partners Group has received a £66m loan to help fund two UK projects.

Provided by Cerberus Capital Management, the loan will assist in developing a purpose-built student accommodation (PBSA) project in Bournemouth and a purpose-designed co-living development project in Guildford.

The £1bn joint venture was announced in June this year with an announced pipeline of over 1,000 beds across £250m of PBSA assets. The pipeline focuses on Russel Group university markets in Manchester, Bristol, Edinburgh and Birmingham.

The PBSA development in Bournemouth comprises 206 beds whilst the co-living development in Guildford will contain 301 studios. Completion of the projects is expected for summer 2023 and summer 2024, respectively.

Managing director of Partners Group, Peter Holden, commented: "We are pleased to agree development finance with Cerberus as we continue to expand our UK PBSA platform with Host to develop high quality, energy efficient, and amenitised housing for students and young professionals."

John Nesbitt, managing director at Host, also said: "We are very pleased to agree this loan facility with Cerberus and look forward to delivering these exciting projects in Bournemouth and Guildford.

"There is a strong appetite in the finance market from lenders for good quality alternative residential assets such as these two well-located schemes, delivered by developers and investors with a proven track record, such as ours."

Head of European real estate at Cerberus, Daniel Dejanovic, commented: "This is a great opportunity to support what will be a top-quality, sustainable living platform.

"These two projects are in desirable locations and will meet the strong and growing demand in the student housing sector."