Kexgill Group asset value increase and Raleigh House win

PBSA operator and investor The Kexgill Group has been given the go-ahead to begin development on the Raleigh House PBSA in Nottingham. The group have also experienced a 14.5% jump in Gross Asset Value.

Kexgill Group has received planning permission from Nottingham City Council to begin works on Raleigh House | PBSA News
Kexgill Group has received planning permission from Nottingham City Council to begin works on Raleigh House.

Real estate investor and purpose-built student accommodation (PBSA) operator Kexgill Group have experienced a 14.5% leap in Gross Asset Value to £183.4m, for the year ending 30 June 2022, and have recently acquired Raleigh House.

As the owners of the University Quarter (UQ) brand, the Kexgill Group also saw a 6.5% increase in Net Asset Value to £67.3m.

Since last year, the PBSA company have been involved in the completion of various developments in Nottingham and Liverpool, with planning permission for the Raleigh House PBSA recently being granted by Nottingham City Council.

Situated within a short distance to Nottingham Trent University, Raleigh House will contain 57 cluster beds in the heart of the city. Approval to begin working on the scheme was granted on 22 March 2023.

Within the same month, InterBay Bank has provided a £25m commercial refinance and development loans for the Group, of which £20m is a ten-year, interest only commercial investment refinance loan.

“Securing medium term fixed rate debt in a variable market is important for our Group particularly where we are creating scale in locations outside our Hull base. It has been a stress-free deal in a market which has seen considerable flux in recent months”.

Richard Stott, Managing Director, Kexgill Group

The group have also submitted planning applications for five more sites in Liverpool, Salford and Nottingham.

Four of the developments are already owned to include PBSA, a retail to student conversion, and a tenant hub complex.

The Kexgill Group own student assets in nine university cities, along with a German operation in North Rhine Westphalia.

The company are looking forward to seeing the development of their assets progress.