Fusion secures £500 million loan to fund five new UK PBSA schemes

Fusion has secured a £500 million whole-loan facility from PBSA finance specialist Maslow Capital. The funding will support Fusion developments in Birmingham, London, Loughborough, Glasgow and Cardiff – delivering 3,138 purpose-built beds.

Each of the five new developments will feature premium amenities, including dedicated study spaces, fully equipped fitness and wellbeing zones including padel courts, gyms and yoga studios, private dining facilities and expansive landscaped outdoor areas.

The financial backing is one of the largest single-lender debt packages arranged for UK PBSA. Daniel Harris, Chief Investment Officer at Fusion Group, says: “In a challenging market, there remains substantial opportunities for those with conviction and depth of expertise across the development, operating and capital markets mix.

This landmark deal is a testament to the attractiveness of the UK’s living sectors and, in particular, the purpose-built student accommodation market in which Fusion has built a successful track record."

With fewer than 17,500 new PBSA beds due to complete during the 2024/25 academic year, and planning and viability challenges continuing to hold back delivery,  the UK’s structural undersupply shows no sign of easing.

The five Fusion schemes are scheduled for completion between 2027 and 2028 in cities where planning has already been secured. With UCAS projecting applicant numbers to rise by up to 30 per cent by 2030, Fusion is well placed to deliver critical capacity.