Eldridge’s £146m loan takes Vita lending beyond £1bn

The senior debt package will fund the development of an 861-bed student scheme at First Street in Manchester.

Eldridge Real Estate Credit, the real estate investing strategy of Eldridge Capital Management, and developer Vita Group have agreed a £146.1m loan for the 34-storey development.

The deal takes the amount that Eldridge, whose co-founder is Chelsea FC chairman Todd Boehly, has lent to Vita for various projects across Europe to £1.1bn.

Since 2020, Eldridge and Vita Group have partnered on 10 PBSA and co-living developments, delivering more than 7,500 units across the UK and Spain.

“Over the past five years, our partnership with Vita has been a testament to our shared vision and commitment to long-term success,” said Graham Keable, managing director at Eldridge Capital Management.

“This tenth transaction together not only underscores Vita’s proven expertise in the space, but also reinforces our confidence in the continued growth and resilience of the UK and European living sector.”

The latest loan will support the development of Vita’s latest First Street student scheme, which was designed by Tim Groom and approved by city planners earlier this year.

Vita completed its inaugural First Street student scheme a decade ago and the plans for plot 9b would see the developer complete a hat-trick of PBSA projects there, taking the number of Vita beds at the complex to more than 1,700.

“The developments we’ve delivered together [with Eldridge] have consistently outperformed benchmarks, validating the strength of our model across student and co-living assets,” said Max Bielby, chief operating officer at Vita Group.

“Our relationship is a powerful example of how long-term financing partnerships, combined with our integrated approach to design, development, and operation, address a clear market need and deliver sustainable value.”

The scheme at plot 9B is under construction and due to complete in June 2028.