Privately owned student accommodation developer and operator Fusion Group has secured a £500M whole-loan facility from pan-European real estate financier Maslow Capital.

The facility is one of the largest single-lender debt packages arranged for UK purpose-built student accommodation and will be used to fund five schemes in Birmingham, London, Loughborough, Glasgow and Cardiff, with a total of 3,138 beds. The assets will be operated by Fusion under its management platform.

The five schemes are scheduled for completion between 2027 and 2028 in cities where planning has already been secured.

The facility was structured by Maslow Capital’s development finance team, advised by DLA Piper. Fusion was advised by Herbert Smith Freehills Kramer LLP. Each of the five assets will include dedicated study spaces, fitness and well-being zones, including padel courts, gyms and yoga studios, private dining facilities and landscaped outdoor areas.

“In a market where demand continues to outstrip new supply, the fundamentals for well-located, purpose-built student accommodation remain exceptionally strong,” Maslow Capital Senior Director of Origination Sky Mapson said in a statement. “Structuring a single £500M facility across five projects allowed us to provide Fusion with the financial firepower to deliver their ambitious pipeline.”

Maslow Capital has funded more than £8.7B of real estate projects and is part of the Arrow Global Group, a European vertically integrated asset manager specialising in credit and real estate.

Fusion has delivered more than 6,000 beds and has amassed a secured pipeline worth £2.2B in gross development value that will deliver more than 11,000 PBSA beds across London and the UK, the company said.

Investment in the UK PBSA sector reached £3.5B in 2024, marking a 13% increase from 2023, according to Savills. Over the past five years, the sector’s annual investment volumes have averaged £4.9B, demonstrating its resilience despite ongoing market challenges, the adviser said.

It pointed to large-scale land transactions as demonstrating strong demand fundamentals, including the sale of the 1,014-bed One Medlock scheme in Manchester, where Savills advised Dominus on its deal with Greystar, and Greystar’s acquisition of the 836-bed Triangle site in Selly Oak from Apsley Capital and Galliard Homes.

In London, notable transactions included the sale of the 444-bed Kings Place to Unite Group as well as iQ Student Accommodation/Blackstone’s acquisition of Blackfriars Crown Court. Regionally, Corebridge Financial sold assets in Bournemouth and Cardiff to Generation Partners, supported by new capital partner Goldman Sachs.