Investec Grants an £85m PBSA Loan to GSA

Global Student Accommodation (GSA), one of the global frontrunners in PBSA, is set to receive an £85m loan from the banking and wealth management organisation, Investec, after a recent declaration. This loan is set to help GSA finance the refurbishment of five of their PBSA properties in the UK. 

Current students’ needs and the support of their well-being during their ongoing study period are to be addressed through this refurbishment work that will also concentrate on enhancing the living quarters and common areas. 

A comment was made by Sebastian Walley on behalf of Investec Real Estate, saying the following: "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."

Operating in nine countries, GSA is present in over 70 of the leading educational cities in the world. In the UK specifically, GSA is in charge of five properties that are located in London, Newcastle, Lincoln, Nottingham, and Sheffield. These properties provide a total of 1,460 beds to students and are managed by Yugo, GSA’s operating partner. 

Investec has been in the business of student accommodation lending for quite some time. Since 2011, the company has financed around 22,000 beds across 55 schemes in 23 different cities in the UK. And in 2021, Investec Real Estate has achieved a significant milestone by surpassing the £1bn mark in student accommodation lending.

Reaching a record high of £7.2bn in 2022, the investment in the UK student accommodation sector represents a 69% increase from the previous year, which is also significantly higher than the long-term average of £4.1bn over the preceding five years.

The Global Head of Capital Markets at GSA, John Jacobs, also made a comment on the matter that went as follows: "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."