Cerberus Capital Management has extended a £66.2 million (€75.4 million) loan to aid in financing two development projects spearheaded by Partners Group and Host Student Housing UK, a student housing and co-living investment collaboration.
The joint venture, established in June of this year with a capitalization of £1 billion, was initially seeded with two operational purpose-built student accommodation (PBSA) assets owned by Host, along with a PBSA development endeavor in Bournemouth and a purpose-designed co-living project in Guildford. Additionally, Partners Group and Host disclosed a robust pipeline of over £250 million worth of PBSA developments, encompassing more than 1,000 beds across prime Russell Group university markets including Manchester, Bristol, Edinburgh, and Birmingham.
Subsequently, Partners Group and Host have secured loan facilities from a Cerberus affiliate to finance a PBSA development in Bournemouth, comprising 206 beds, and a co-living development in Guildford, comprising 301 studios. Completion for these projects is anticipated for summer 2023 and summer 2024, respectively.
Peter Holden, Managing Director and Co-head of Real Estate Asset Management at Partners Group, expressed satisfaction in securing development finance with Cerberus, highlighting the ongoing expansion of their UK PBSA platform with Host to deliver high-quality, energy-efficient, and amenitized housing for students and young professionals.
John Nesbitt, Managing Director at Host, echoed Holden’s sentiments, emphasizing the positive outcome of securing the loan facility with Cerberus and expressing anticipation for the successful delivery of the Bournemouth and Guildford projects. He underscored the robust appetite in the finance market for premium alternative residential assets, such as these strategically located schemes, developed by seasoned developers and investors like Partners Group and Host.
Daniel Dejanovic, Head of European Real Estate at Cerberus, emphasized the opportunity to support a top-quality, sustainable living platform through these projects. He noted the desirability of the project locations and their alignment with the strong and growing demand within the student housing sector.