The £39 million whole loan facility from specialist purpose built student accommodation (PBSA) lender Kinetic Capital will provide finance for Jensco Group to develop a 522-bed, PBSA property on Traffic Street in Nottingham.
One of the largest student cities in the UK, Nottingham is undersupplied in the PBSA market and Kinetic’s partnership with Jensco Group is set to support the growing demand in the city. The scheme is due to be completed for the 2022/23 academic year.
The transaction is also the first in Kinetic’s environmental, social and corporate governance (ESG) programme, through which the lender offers financial incentives for borrowers to deliver on pre-agreed ESG objectives with a focus on initiatives that support the mental health and wellbeing of students.
Burges Salmon partners Richard Leeming and Paul Browne led the team advising Kinetic on the transaction, with support from director Matt Crossley and senior associate Will Hall. Richard comments: “It’s very positive to see the PBSA sector remaining resilient in the face of the global COVID-19 pandemic. We are delighted to have worked with Kinetic Capital on its first loan which is supporting the continued growth of student numbers with an ESG funding package.”
Kinetic’s chief executive officer, Steve Grant, says: “We are pleased to have worked with Richard, Paul and the rest of the Burges Salmon team to close the loan and to be partnering with Jensco Group on this high-quality scheme in a premier higher education market.”