Real estate finance specialist Maslow Capital is facilitating the development of two PBSA schemes in the heart of Leeds and Lancaster with a finance package totaling £68m to a joint venture advised by JLL.
The two loans will enable the joint venture between H.I.G. Capital’s alternative investment firm H.I.G. Realty Partner, with $59bn of equity capital under management, and developer Primus Property Group, to deliver a total of 790 student beds across the two university cities.
£36m will be allocated to the development of a much-needed PBSA scheme in Leeds. Ideally located under a mile east of Leeds city centre on Regent Street, the scheme will deliver 402 studios.
“We are delighted to deepen our relationship with two top-tier clients, through the funding of these transformative projects. Our extensive experience in the sector, having funded a significant number of student accommodation schemes resulting in the creation of 3,916 student units since our inception, underscores Maslow’s steadfast commitment to supporting the development of high-quality living sector assets in locations where demand exceeds supply.”
Sky Mapson, Director, Deal Origination, Maslow Capital
An additional £32m will support the development of a second PBSA scheme in the city of Lancaster, situated in a desirable riverside setting. The scheme will deliver 388 studios.
Both schemes will offer a range of amenities including games rooms, common living areas, private dining rooms, group study spaces, cinema rooms, gyms, yoga studios, and vibrant outdoor social areas.
“The development of these two projects exemplifies our ambition to craft state-of-the-art student living experiences across the UK. Partnering with Maslow Capital, a proven name in the sector, assures us of the strength and reliability that comes with decades of experience in student accommodation financing. We are confident that together, we will set new benchmarks in student living, combining luxury, convenience, and community spirit.”
Duncan Melville, Director, Primus Property Group
In Leeds and Lancaster, a steady increase in domestic students and a surge in international students highlights the urgent need for more student housing in both cities. In Leeds, the number of international students has risen by 54% since 2015, while Lancaster has experienced a 19% increase.
With Maslow Capital’s £68m finance package, H.I.G. Realty Partner’s and Primus Property Group will address the undersupply of quality student accommodation in Leeds and Lancaster, leveraging their expertise to meet the growing student housing needs in these cities.
“The notable increase in the international student population in both Leeds and Lancaster has intensified the demand for high-quality student accommodation in these cities. The early reservation of properties and the heightened demand for homes within walking distance of universities are trends apparent in both cities. With esteemed universities experiencing a surge in enrolments, the supply of purpose-built student accommodations is pivotal.”
Rachael Gordon, Head of Deal Execution, Maslow Capital
Established in 2009, Maslow Capital provides real estate finance with loans ranging from £10m to £300m. The company is part of the Arrow Global Group, a leading European vertically integrated asset manager specialising in credit and real estate. With dedicated lending desks that understand the intricacies of each real estate asset class, Maslow Capital’s borrowers are fully supported by a highly experienced team throughout their development.
