Fusion Group obtains €583m loan from Maslow Capital

UK PBSA developer and operator Fusion Group has obtained a £500 mln (€583 mln) loan from Maslow Capital to finance the construction of five high-quality student housing projects in major university cities.

PBSA assets

This significant funding package, one of the largest single-lender deals for UK student accommodation, will enable Fusion to build 3,138 beds across Birmingham, London, Loughborough, Glasgow, and Cardiff. Fusion will manage these properties, increasing its total managed beds to over 11,200 by 2030.
These developments are crucial as the UK faces a shortage of student housing, with only a limited number of new beds expected to be completed in the coming academic year and ongoing challenges hindering new projects. With university application numbers projected to increase significantly by 2030, Fusion's projects, slated for completion between 2027 and 2028, will provide much-needed capacity.
The five student residences will offer a range of premium amenities, such as study areas, fitness and wellness facilities (including padel courts, gyms, and yoga studios), private dining spaces, and extensive outdoor areas.
Ellis Sher, co-founder and CEO at Maslow Capital, stated: "We remain fully committed to supporting developers of all sizes who are making a much-needed difference to the supply of new accommodation across the UK and Europe. By providing £500 million of long-term capital, Maslow is helping Fusion turn plans into bricks and beds efficiently and at scale."
Sky Mapson, senior director, Origination at Maslow Capital, added: "In a market where demand continues to outstrip new supply, the fundamentals for well-located, purpose-built student accommodation remain exceptionally strong. Structuring a single £500 mln facility across five projects allowed us to provide Fusion with the financial firepower to deliver their ambitious pipeline. We're proud to back a partner of Fusion's calibre and to demonstrate Maslow Capital’s ability to deploy substantial capital into high-conviction sectors at scale."
Daniel Harris, CIO at Fusion Group, commented: "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. The UK remains a deeply attractive market both to institutional capital and, with the support of Maslow, we look forward to building out these five schemes into best-in-class assets at the cutting edge of what students want and what investors need from their real estate projects. It’s a pleasure working with a genuine partner in the shape of the team at Maslow, and we look forward to collaborating with them going forward."
Nigel Henry, co-founder and CEO at Fusion Group, further added: "Securing one of the UK’s largest ever living sector development loans demonstrates the quality of our product and team."
Maslow Capital's development finance team structured the £500 mln financing deal. DLA Piper provided legal counsel to Maslow Capital, while HSF Kramer advised Fusion Group on the transaction.