Maslow capital

Lender completes three major student accommodation deals

Maslow Capital has completed three purpose-built student accommodation (PBSA) deals collectively valued at approximately £65m.

The schemes – which are located in Durham, Nottingham and Coventry – will in aggregate deliver more than 190,000 sq ft of accommodation, including 538 student beds across three university towns that are in high demand from UK and international students.

The Durham campus will see the delivery of 227 beds across a 95,000 sq ft scheme located a mile from the main university campus.

Over 100 units will be constructed in Nottingham and 211 units will be delivered in Coventry, where demand significantly outstrips supply.

Maslow has also announced the launch of a specialist PBSA division which will focus on providing bespoke lending and funding facilities for developers in the student accommodation sector.

To date, the specialist provider of real estate development finance has completed 10 PBSA facilities, which will see more than 1,600 new beds and 500,000 sq ft of new accommodation delivered, with a combined GDV of more than £160m.

The student accommodation sector has seen significant expansion during the past decade with a combined investment into the sector of £45bn, with over £8bn invested in the last two years alone, according to research by Knight Frank.

Maslow believed that the opportunity for developers and investors to gain exposure to an asset class that continues to perform well – despite uncertain economic conditions – was compelling.

Ellis Sher, CEO and co-founder of Maslow Capital, commented: “These three deals add significant scale to our PBSA portfolio and underline the compelling opportunities we continue to see in this exciting and growing market segment.

“PBSA has delivered attractive returns for investors and developers over the past decade, helped by growing demand from large pension funds and other institutional investors.

“The fundamentals of PBSA, sustainable income streams together with stable yields should sustain the growth of the sector going forward, and our ability to provide both senior and stretch senior funding packages positions us well to grow our exposure to this niche in the future.

“Our new dedicated PBSA division will be resourced by a team with considerable experience in this asset class, which will provide developers with a specialist service from a lender that understands the intricacies of their sector.”

Maslow Capital offers a range of debt financing products to developers across a broad range of real estate asset classes.

The lender is able to offer structured debt solutions to clients developing new PDSA schemes with facilities ranging up to £100m.

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