Urbanest has secured a £350 million senior loan facility to refinance its five-asset, 2,520-bed central London student accommodation portfolio.
M&G Investments and Aviva Investors Real Estate Finance provided the financing on a 50/50 basis. The fixed-rate facility carries a loan-to-value ratio of 55 percent and matures in mid-2027.
Vicky Skinner, finance director at Urbanest, noted in a statement that the transaction consolidates the existing lending position of the business, replacing three loans with the single 11.5-year bilateral facility.
“Securing long-dated, fixed-rate finance at an attractive point in the market cycle was a core objective of Urbanest, as the business continues to invest in the existing portfolio and explore opportunities for expansion,” she said.
The portfolio is anchored by the 1,140-bed Westminster Bridge scheme and includes properties located in Hoxton, King’s Cross, Tower Bridge and St Pancras.
The Westminster Bridge development (pictured), which lists a top-floor lounge with views across the River Thames to the Houses of Parliament among its amenities, opened in 2015 and was 99 percent occupied in the first year of operations.
Urbanest, a developer-operator of central London student accommodation that partners with London-based universities on its developments, was founded in 2009 by London-based M3 Capital Partners, which has created purpose-built student accommodation in the UK and Australia.