Banking and wealth management group Investec announces that they are loaning £85m to the global leader in PBSA, GSA, for the re-finance and partial refurbishment of five of their UK PBSA assets. This will be the first time that Investec have funded GSA, with both companies excited to upgrade the PBSA schemes Investec are contributing towards.
Refurbishment activity will focus on improving bedrooms and communal spaces, responding to the evolving demands of today’s student customers, and supporting their wellbeing during their time at university.
“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.”Sebastian Walley, Investec Real Estate
GSA is active in nine countries and operates in 70 of the world’s leading educational cities.
In the UK, the properties provide a total of 1,460 beds to students in London, Lincoln, Newcastle, Nottingham and Sheffield, and are managed by GSA’s operating partner, Yugo.
Last year, Investec reached new heights as they surpassed the £1bn student accommodation lending milestone after funding 22,000 beds across 55 schemes in 23 UK cities since 2011.
Investment in the UK student accommodation sector totalled a record £7.2bn in 2022, up 69% year-on-year and significantly higher than the long-term average of £4.1bn over the previous five years.
Currently, there are an estimated 95,000 new bed spaces in the planning pipeline, which will not meet the demand of the 263,000 additional full-time undergraduates anticipated between now and 2030.
“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.”John Jacobs, Global Head of Capital Markets, GSA