The Manchester-based developer has agreed £169m of credit facilities with Lloyds Bank, and two American lenders, Wells Fargo and PGIM Real Estate, the property arm of New York-listed Prudential Financial, to fund the growth of student accommodation brand, Vita Student.
Select Property Group said on Friday the five-year debt deal will enable “Vita Student to expand into new cities with a build-to-hold strategy, replacing the group’s previous strategy of retailing individual buildings to investors.”
Of the total, £108m of senior development and investment finance is shared equally by Lloyds Bank and Wells Fargo, the remaining £61m is a junior facility provided by PGIM Real Estate. KPMG advised Select.
Mark Stott, chief executive of Select Property Group: “Vita Student currently operates 10 buildings across eight cities but with high demand for our product we want to be represented in more university cities. Successfully securing this credit allows us to do that quickly, while crucially allowing us to retain the assets.”
Select was advised by Pinsent Masons and Weightmans. Lloyds and Wells Fargo were advised by Berwin Leighton Paisner. PGIM Real Estate were advised by Taylor Wessing and Addleshaw Goddard.