Refinancing of Elite Student Housing Facilities Guided by Ashurst
In a significant move for the purpose-built student accommodation (PBSA) sector, the Unite Group has secured a £400 million refinancing deal with pensions insurer Rothesay. This eight-year financing agreement, which took place in July 2025, will provide much-needed liquidity and underpin the long-term financial stability of the student accommodation market.
The refinancing deal is secured against a portfolio of 23 high-quality PBSA assets, located in 15 cities across the UK. These assets are owned and managed by the Unite Group, making it a significant player in the UK PBSA market with approximately 68,000 bedrooms across 153 properties.
Rothesay's investment is secured against this portfolio, strengthening their position as the UK's largest provider of specialist pensions insurance, managing assets worth over £70 billion. The Unite Group's student accommodation fund, USAF, is the biggest in the UK, providing strong backing and stability for the investment.
The Unite Group received legal counsel from global law firm Ashurst for the refinancing. The Ashurst advisory team, headed by real estate finance partner Stuart Blacklock, provided comprehensive legal advice and structuring expertise to complete the complex transaction. The team included partners Tim Gummer, Chris Benbow, David Razzell, and Sam Almaz, who also provided assistance in the advisory team.
Gary Leadbeater, Unite Group's director of group treasury and FP&A, commented on the transaction, stating, "This refinancing keeps Unite Group well-positioned to deliver on its strategy." Harish Haridas, head of commercial real estate at Rothesay, added, "The refinancing deal is a testament to our commitment to delivering high-quality, long-term investments that ensure security for the pensions we protect."
The refinancing deal enhances liquidity and underpins long-term financial stability within the student accommodation sector, supporting the higher education market that is vital to the UK economy. The new £400 million loan increases Unite Group's available liquidity, allowing it to continue its strategic growth in the PBSA sector.
Since its founding in 1993, the Unite Group has grown to be the largest PBSA provider in the UK. This refinancing represents a significant long-term investment in purpose-built student accommodation with backing from a major pensions insurer, providing both liquidity to Unite Group and security to Rothesay’s pension commitments.
The refinancing deal, backed by Rothesay, provides the Unite Group with a significant £400 million loan, enhancing its liquidity and underpinning long-term financial stability in the purpose-built student accommodation (PBSA) market. As one of the UK's largest providers of PBSA with approximately 68,000 bedrooms across 153 properties, the Unite Group's financial strategies are centered around maintaining robust liquidity for continued growth in the sector.
