PGIM Real Estate has extended a debt financing facility to UK-based real estate investment trust GCP Student Living. The firm has also provided additional debt financing, according to Real Estate Capital’s sister publication, Private Debt Investor.
The financing will be used to facilitate the acquisition of a student accommodation development located at Woburn Place in London. It may also be utilised to fund an additional London-based acquisition.
The financing involves the extension of an existing debt facility which, according to a company announcement, is being increased from £130 million (€152 million) to £170 million with a lower interest rate. A spokesman for GCP declined to comment beyond the announcement.
PGIM has also provided an additional £65 million in debt financing, £50 million of which has been withdrawn. The remaining amount will be withdrawn in September, the announcement notes.
In addition to the Woburn Place acquisition, GCP is planning an additional buy. The REIT is eyeing Podium, Royal Holloway London, a development it has conditionally agreed to acquire. The precise cost of both transactions could not be determined by time of publication.
A spokesman for PGIM was unable to comment by time of publication.