In a landmark move signalling deep investor confidence in the UK’s living sector, Fusion Group has secured a €588m (£500m) whole-loan facility from pan-European real estate financier Maslow Capital to deliver five new Purpose-Built Student Accommodation (PBSA) developments. With a total of 3,138 beds and over 142,500 m² of development, this represents one of the largest single-lender financings in the UK PBSA market to date.
The assets, located in London, Birmingham, Cardiff, Glasgow and Loughborough, are all fully consented and are scheduled to complete between 2027 and 2028. At a time when the UK faces a chronic undersupply of PBSA, with under 17,500 new beds expected for the 2024/25 academic year, this investment directly addresses a widening demand-supply gap, particularly as UCAS projects student numbers to rise by 30% by 2030.
The developments will be operated under Fusion’s vertically integrated management platform, which is forecast to oversee more than 11,200 beds by 2030. Each of the five assets will feature a suite of high-end amenities, including padel courts, gyms, yoga studios, private dining rooms, and landscaped outdoor areas, targeting both lifestyle and academic well-being.
Crucially for investors, this deal reflects a growing trend: institutional capital is increasingly pivoting towards operational real estate that promises long-term cash flow stability. As the rental housing market in the UK matures, PBSA stands out with its inflation-linked income, strong pre-leasing fundamentals and counter-cyclical nature, particularly amid volatile market conditions.
The transaction was structured by Maslow’s development finance team, led by Sky Mapson, Senior Director, Origination, and Rachael Gordon, Head of Deal Execution for the UK and Europe. Legal advice was provided to Maslow by DLA Piper, while HSF Kramer represented Fusion.
“Securing one of the UK’s largest ever living sector development loans demonstrates the quality of our product and team,” said Nigel Henry, Co-Founder and CEO at Fusion Group. “This is the latest milestone in Fusion’s continuing growth as a developer and long-term owner and operator of assets.”
People mentioned:
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Nigel Henry, Co-Founder and CEO, Fusion Group
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Daniel Harris, Chief Investment Officer, Fusion Group
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Sky Mapson, Senior Director, Origination, Maslow Capital
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Rachael Gordon, Head of Deal Execution, UK & Europe, Maslow Capital
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Ellis Sher, Co-Founder and CEO, Maslow Capital
Image Source: Maslow Capital
Companies mentioned:
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Fusion Group, developer and operator
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Maslow Capital, real estate financier
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DLA Piper, legal adviser to Maslow
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HSF Kramer, legal adviser to Fusion
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