Partner Article

Weightmans - finance deal to build new student accommodation

Liverpool-headquartered Weightmans LLP has worked with Select Property Group to secure £169m of credit facilities to fund the expansion of its student accommodation brand Vita Student into new cities.

The Cheshire-based developer, retailer and operator of property brands has secured the five-year finance facilities through Lloyds Bank, Wells Fargo and PGIM Real Estate. The funding 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.

The facilities are split between a £108m senior development and investment finance facility, provided by Lloyds Bank and Wells Fargo on a 50/50 basis, and a £61m junior facility provided by PGIM Real Estate.

Mark Stott, chief executive of Select Property Group, said: “Vita Student currently operates ten 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.”

Jonathan Monnickendam, of Lloyds Bank Commercial Real Estate, said: “We are pleased to be able to help support Select’s growth ambitions and, in turn, create new jobs and investment in more UK cities. Working closely with the management team and their advisors, we were at the forefront of developing a new type of funding model for the business that gives it both the firepower and agility it needs.”

John Cleaveley, Partner in the Construction team at Weightmans LLP who advised Select said: “The financing will bring new accommodation for the UK’s growing student community in more cities than ever before, and we are delighted to have played a part in securing this for Select.”

Select was advised by Pinsent Masons (property and banking) and by KPMG (financial). Lloyds and Wells Fargo were advised by Berwin Leighton Paisner.

PGIM Real Estate was advised by Taylor Wessing (property and banking) and Addleshaw Goddard (construction).

This was posted in Bdaily's Members' News section by Weightmans LLP .