Global leader in student housing – Global Student Accommodation – announces that it has closed four financing facilities in the US, totalling over $550m (the ‘Facilities’). The Facilities with Pacific Life Insurance Company, J.P. Morgan and TD Bank, PGIM Real Estate, and PNC Agency Finance, which provided access to Freddie Mac financing, were finalised in the Q4 2022. They cover over two thirds of Global Student Accommodation’s US student housing portfolio, which is held in a joint venture partnership with a fund advised by Morgan Stanley Real Estate Investing (MSREI).
The Facilities are all with new lenders, demonstrating the strength of the company’s business model, relationships and underlying portfolio, providing Global Student Accommodation with an optimal financing structure to support its growth strategy. The financings are a combination of fixed and floating interest rates. TSB Capital Advisors acted as debt advisor for the transaction.
All assets are managed by the Global Student Accommodation’s global operating partner Yugo. They serve leading universities including the University of Texas, the University of Arkansas, Mississippi State University, Florida State University and the University of Washington.
“I am delighted to start 2023 having secured these financing facilities with new lending partners. The ability to close the transactions in the current economic climate is testament to the strength of the JV, reflecting its ability to develop new and deep relationships with lenders, and the stability of the underlying portfolio. This also highlights the robust characteristics of the student housing sector, with its ability to perform through cycles, as lenders continue to prioritise borrowers with high quality assets and a proven track record.
“The new Facilities will play a significant part in optimising our US capital structure, providing the security and flexibility to support our strategy to become a leader in US student housing.”
John Jacobs, Global Head of Capital Markets, Global Student Accommodation
Global Student Accommodation entered the US in December 2020 and has quickly expanded its footprint to over 18,000 beds across 23 states and 32 cities. The joint venture’s strategy is to pursue measured growth, deploying capital through acquisitions in core markets, consolidating its presence in key cities such as Austin, Texas, while entering new target markets.
The business is also making a significant investment in its existing US portfolio, with a multi-million-dollar program of rehabilitation and improvement works underway and scheduled for completion this year. This includes the refurbishment of 2,500 beds, investment in clubhouse and amenity spaces, and targeted ESG projects to improve the environmental performance of the portfolio – enhancing the students experience and driving asset value.
