Brookfield-backed French purpose-built ctudent sccommodation (PBSA) operator UXCO Group has secured a €140 million financing from BNP Paribas.
Secured at competitive terms, this financing transaction is to refinance the existing debt backed by the 1300-bed ECLA existing residence, and finance the acquisition of a landplot next to its existing ECLA student asset, a nine-story building in the Paris suburbs to expand its ECLA campus, said the company in a statement.
The 550-bed extension will be completed by Océanis, UXCO’s sister development company.
The new residence will be the largest PBSA asset in continental Europe with over 1800 beds and will open its doors at the start of the academic year commencing in September 2023.
”With the aim to invest more than 1 billion euros in its French PBSA platform by 2023, this new financing comes at a time when UXCO Group is executing its pipeline to reach a total of over 18’000 beds under operation by 2025, compared to 7,500 in October 2021,” the company said.
Emmanuel Pariente, CEO of UXCO Group, said: “This new financing is proof of the continued confidence placed in our model by our long-standing partners, BNP, which have supported the Group since the creation of the ECLA concept in 2018. We would like to thank the team at BNP Paribas for their continued support.”
Alban Tézenas du Montcel, Director within the Real Estate Capital Markets team of BNP Paribas, said: “We are pleased to support UXCO Group in their continued development. This represents an important milestone for the group. After 3 years in operation, the management has demonstrated their ability to drive the sustainability of the ECLA model and grow the company, particularly through new acquisitions”
UXCO Group, is owned by private real estate funds managed by Brookfield, the global alternative asset manager.