PGIM Real Estate, the real-estate focused arm of US-based investment firm Prudential, has extended a debt financing facility to UK-based real estate investment trust GCP Student Living. The firm has also provided additional debt financing.
The financing will be used in facilitating the acquisition of a student accommodation development located at Woburn Place in London. It may also be utilized to fund an additional London-based acquisition.
The financing involves the extension of an existing debt facility. The facility, according to a company announcement, is being increased from £130 million (€152 million, $162 million to £170 million (€199 million, $212 million) with a lower interest rate. A spokesman for GCP declined to comment beyond the announcement.
PGIM has also provided an additional £65 million in debt financing, £50 million of which has been withdrawn. The remaining amount will be withdrawn in September, the announcement notes.
In addition to the Woburn Place acquisition, GCP is planning an additional buy. The REIT is eying Podium, Royal Holloway London, a development it has conditionally agreed to acquire. The precise cost of both transactions could not be determined by time of publication.
A spokesman for PGIM was unable to comment by time of publication.