Blackstone has closed the refinancing of one of the major credit facilities, totalling £2.6 billion, of its iQ Student Accommodation platform.
The facility for one of the largest providers of private purpose-built student accommodation in the UK was originated by a combination of existing and incoming lenders. Led by Citi and Bank of China, the lenders include Bank of America, Morgan Stanley, Royal Bank of Canada, Standard Chartered, Sumitomo Mitsui Banking Corporation, United Overseas Bank, BNP Paribas, Deutsche Bank and Crédit Agricole.
Blackstone bought iQ in May 2020 for £4.7 billion in, at the time, the largest private real estate transaction in the UK.
A Blackstone spokesperson said: “This successful refinancing, with tremendous support from both new and existing lenders, is a reflection of iQ’s strong operational and financial performance, its outstanding management team, as well as its high-quality asset base.”
The refinancing has been completed ahead of the current facility reaching maturity in May 2025, with the spokesperson terming the refinancing "part of the normal course of business".
Blackstone has completed a string of major refinancings in recent months included the £520 million refinancing of its Fora flexible offices platform, first flagged by CoStar News, and the €7.5 billion refinancing of its Mileway industrial platform in Europe.
The iQ platform includes 85 operational properties comprising 35,000 beds and an additional 3,000 under development. Approximately 90% of iQ’s assets by value are in Russell Group towns and cities where student demand is highest, with over 50% of value in London.
The total accretive and development capital expenditure invested in iQ since Blackstone’s acquisition amounts to over £280 million. In 2023, iQ announced a series of student housing acquisitions including Vega in London and The Mont in Edinburgh from Downing Street Homes for £370 million, Longwood Close in Warwick, a forward funding with Topland, Signal Place in Nottingham and Havannah House in Glasgow.