Salford’s Riverside House in PBSA refinancing
A five-year £19.2m loan from Secure Trust Bank has recapitalised the 242-bed asset, bought by Orka Investments in 2023 and now held in partnership with BGO Strategic Capital Partners.
BGO said that the transaction, part of a two-asset portfolio arrangement also including a development in Derby, strengthens its exposure to the UK student housing sector, which it sees as a high-growth market driven by international demand and persistent supply constraints.
Mike Feasey, relationship director at Secure Trust Bank Real Estate Finance, said: “Here at STB, we pride ourselves on being a relationship-led bank and we consequently take a tailored approach to every deal we encounter. Investing in student accommodation is only
growing in popularity, and we are pleased to have assisted BGO and Orka in bringing this joint venture to fruition.”
The deal was supported by law firm Shepherd & Wedderburn.
International firm BGO said this marks the foundation of a new UK PBSA platform, with the ambition to build a £100m+ portfolio in the sector. These seed investments comprise a combined 568 bedspaces.
Cherine Aboulzelof, managing director and head of BGO Strategic Capital Partners, said: “The UK student housing sector remains one of the most compelling living strategies in Europe, supported by strong fundamentals and deep institutional demand.
“We are pleased to partner with Orka Investments on this transaction, which reinforces our focus on high-quality, purpose-built student accommodation assets in attractive university markets.”
Raoul Malhotra, managing partner at Orka Investments, said: “We are excited to expand our partnership with BGO Strategic Capital Partners on this GP-led recapitalisation. Both assets present strong growth potential, and we look forward to building a successful partnership.”
On the baking arrangements, Malhotra said: “Despite the deal’s complex ownership restructure, the STB team’s professional and pragmatic approach ensured that this could be overcome with ease. I would like to thank all parties involved for their hard work and
steadfastness in getting this deal completed.”
Riverside House was refurbished ahead of the current academic year to include two common rooms, a cinema and games room, secure bike storage and a gym.
BGO is a global real estate investment management advisor and service provider, serving the interests of more than 750 institutional clients with approximately US$83bn of assets under management as of 31 December 2024. It has offices in 27 cities across thirteen countries and is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
BGO Strategic Capital Partners is wholly-owned by BGO and distinctly operated, with three global offices.
Orka is billed as a tech-driven alternative investment and advisory firm that sources and manages investments in real estate and asset-backed businesses on behalf of and in partnership with major institutions.
Orka refinanced the Derby asset, a 326-bed city centre scheme called The Croft, with Bank of London & the Middle East in February 2024.
