Nuveen Real Estate, one of the largest real estate investment managers globally with €141bn of assets under management, has provided a €177m senior term facility to urbanest, the leading Central London student accommodation developer and provider.
The green loan is secured against urbanest Battersea, an 853-bed purpose-built student accommodation (PBSA) property located near the Battersea Power Station regeneration area. The newly completed building achieved practical completion before the 2024/25 academic year and has already stabilised occupancy in the high 90% range. The asset forms part of urbanest's wider 4,645-bed portfolio in London's Zone 1, offering exceptional connectivity via the Northern Line extension.
What sets this development apart is its impressive sustainability credentials. Designed by RIBA Stirling Prize winning architects AHMM with specialist Passivhaus consultancy from Henriksen Studio and constructed by Mace, urbanest Battersea has achieved Passivhaus accreditation, making it the largest Passivhaus building in the UK and the eighth largest globally. With a treated floor area of over 17,964 m², the innovative low-energy construction eliminates conventional heating systems by efficiently utilising solar energy, internal heat sources and mechanical ventilation with heat recovery - delivering up to 90% energy savings compared to typical buildings. The property also achieved BREEAM Outstanding certification.
"The ongoing trend of student population growth combined with the structural undersupply of quality PBSA beds, particularly in Central London, continues to attract investor capital into this sector. Despite only opening in September last year, urbanest Battersea's occupancy level demonstrates the demand for high-quality, well-located student accommodation in Central London. This facility provides an excellent opportunity to add further exposure to a much sought after asset class and we are proud to work alongside such a highly experienced sponsor specialising in the PSBA space," said Caroline Pellmann, Senior Director at Nuveen Real Estate.
"We are delighted to partner with Nuveen Real Estate for the refinancing of our newest asset, urbanest Battersea. The business has pushed sustainability boundaries far beyond anything seen in the UK PBSA sector to date, and we are immensely proud to have created a world-class sustainable student community in London where our student residents, University partners and our team can thrive," added Vicky Skinner, CFO at urbanest.
For institutional investors, the transaction highlights a significant opportunity in the evolving PBSA sector - ESG-compliant assets with strong operational track records are commanding premium pricing and attracting favourable financing terms, potentially offering better risk-adjusted returns than traditional commercial real estate sectors currently experiencing headwinds. The project showcases Mace's innovative low carbon cassette (LCC) offsite technology, which significantly reduces embodied carbon, structural steel, deliveries to site and waste, aligning with growing investor focus on full lifecycle carbon impact. Notably, this is the first of urbanest's Passivhaus schemes, with a second, larger development already underway at Canary Wharf, set to become the largest residential Passivhaus development globally upon completion in 2026.
People mentioned:
- Caroline Pellmann, Senior Director at Nuveen Real Estate
- Vicky Skinner, CFO at Urbanest
- Angus Kearin, Head of Development at Urbanest
- Ged Simmonds, Managing Director, Private Sector, Mace Construct
- Dragos Arnautu, Building Certifier, Passivhaus Institute
Companies mentioned:
- Nuveen Real Estate - Global real estate investment manager with €141bn AUM
- urbanest - Central London student accommodation developer and operator
- Mace - Global delivery consultant and construction expert
- AHMM - RIBA Stirling Prize winning architectural firm
- Henriksen Studio - Specialist Passivhaus design consultancy
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