UK-based development finance provider Maslow Capital has completed four financing deals totalling £74 million (€83.8 million), in a move to diversify its loan book.
The financings back new residential developments in London and Manchester, delivering more than 80 new apartments and commercial space along with 211 student beds in Coventry, and 246 in Sheffield. The new university facilities will be located near the main campuses of both cities, and will be completed in time for the 2018/19 academic year.
The deals form part of Maslow’s strategy to diversify its exposure – moving into different segments of the real estate market including residential, mixed-use and purpose-built student accommodation across the UK, the firm said.
“It is particularly encouraging to see the continued growth in demand in key strategic regions of the UK, where we see further opportunities moving into 2018,” said Ellis Sher, chief operating officer of Maslow.
“We witnessed strong growth in our lending levels through 2017, both measured by volume and value with an increase in our average loan size,” he added.
Towards the end of 2017, Maslow completed two further lending transactions in the student accommodation sector, which will enable schemes in Durham and Nottingham to be delivered in time for the 2018 intake.
As a result, Maslow has now completed 11 deals in the student accommodation sector, with a combined gross development value of more than £180 million and delivering 500,000 square feet of new student accommodation in total.
In January 2016, Maslow formed a joint venture with the special situations division of San Francisco-based private equity giant TPG, to focus on UK residential development, offering stretch senior finance.
The partnership said it would lend up to 90 percent loan-to-cost, provided deals amortise to around 70 percent of gross development value during the loan term – which would typically be up to three years.