Alternative sectors

By 2066, one in four people in the UK will be aged 65 and over, according to the Office for National Statistics. Housing this rapidly aging population has been recognised as an important social issue, leading property investors and lenders into the retirement accommodation market.

A French student housing provider has sourced financing including mezzanine debt, in what is thought to be the first example of junior debt being written in the country’s student accommodation sector.

Select Property Group has sourced a £108.9 million (€123 million) loan from a club of lenders to fund the development of a build-to-rent scheme in Manchester.

Societe Generale and HSBC have financed the Generator Hostels portfolio recently acquired by real estate fund manager Queensgate Investments with a €215 million loan.

Whether by geography, sector or product, real estate finance providers are broadening their scope. Alternative lenders, particularly, are set to benefit from the drive to diversify.

Lloyds Bank Commercial Banking has provided a £50 million (€56.7 million) financing through its Green Lending Initiative to a UK science parks joint venture.

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.

UK healthcare REIT Primary Health Properties has signed a £75 million (€84.3 million) refinancing facility with Aviva and a £30 million revolving credit facility with Lloyds Bank.

Global broker CBRE has hired PwC’s former real estate corporate finance executive, Philip Shields (pictured), as senior director within its Capital Advisors team.

Hermes Investment Management has provided a £120 million (€136 million) loan to UK boutique hotel operator Firmdale Holdings.