Deal ‘testament to attractiveness of UK’s living sectors’ says developer amid PBSA market growth
Fusion Group has secured a £500m loan to finance the development of five schemes.
The student housing developer and operator says the whole-loan facility from Maslow Capital will fund 3,138 purpose-built beds.
The schemes will be delivered in Birmingham, London, Loughborough, Glasgow and Cardiff and are due for completion 2027 and 2028.
The deal is understood to be one of the largest single-lender funding packages seen to date in the UK’s purpose built student accommodation market.
Fusion has delivered over 5,000 beds to date and as of last year had a development pipeline worth £2.2 billion in gross development value (GDV), set to deliver almost 10,000 more student beds
Daniel Harris, chief investment officer at Fusion Group, said: “In a challenging market, there remains substantial opportunities for those with conviction and depth of expertise across the development, operating and capital markets mix.
“This landmark deal is a testament to the attractiveness of the UK’s living sectors and, in particular, the purpose-built student accommodation market in which Fusion has built a successful track record.”
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The UK’s PBSA market has been growing rapidly recently, along with other living sectors. Savills in January published analysis showing investment in PBSA reached £3.5bn in 2024, up 13% year-on-year.
“The UK remains a deeply attractive market both to institutional capital and, with the support of Maslow, we look forward to building out these five schemes into best-in-class assets at the cutting edge of what students want and what investors need from their real estate projects.”
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