Bank of London and The Middle East plc (BLME) has provided Orka Investments Ltd (Orka) with a new finance facility to refinance The Croft, a prime best-in-class 326-bed Purpose Built Student Accommodation (PBSA) scheme located in Derby City Centre.

The Croft has a track record of 100% occupancy since being acquired in 2021, and is ideally located on the doorstep of the University of Derby’s new business school, which will cater to 6,000 new students in addition to the University’s 21,000 current students. The Croft benefits from excellent environmental credentials and offers tenants a range of amenities that have driven tenant satisfaction to a market-leading level and helped deliver an exceptional letting track record.

The deal marks BLME’s second PBSA financing in recent months, following the provision of £23.1 million to Urbium Capital, announced in November.

Vytenis Starka, Manager, Real Estate Finance at BLME, said: “There is a continued appetite to partner with best-in-class investors such as Orka for student accommodation opportunities, which has been a very resilient asset class despite the current economic headwinds. The deal with Orka is the latest in a string of recent PBSA deals for the bank. We anticipate that levels of interest in this sector will continue throughout 2024, owing to their high occupancy levels and favourable demographic trends.”

Raoul Malhotra, Co-Founder and Managing Partner at Orka commented: “Orka is thrilled to have successfully refinanced The Croft. This collaboration marks a significant milestone for Orka and underscores our commitment to PBSA. We are excited about the prospects that this partnership opens and are grateful for the support of BLME throughout the refinancing process.

This refinancing initiative aligns with our broader strategy of creating sustainable and high-quality living spaces for students. The Croft is well-positioned to continue providing exceptional accommodation for our students while delivering strong returns for our investors and stakeholders.”

About Orka

Orka is a technology-driven alternative investment and advisory firm, founded by Raoul Malhotra and Oskar Sköldberg, that sources and manages investments in real estate and asset backed businesses on behalf of, and in partnership with, some of the world’s most prominent institutions and families. Orka has a particular focus on manage-to-core strategies in high-barrier-to-entry locations. Orka’s purpose-driven club model gives a wider range of investors direct access to institutional-quality opportunities.  

About Bank of London and The Middle East (BLME)

BLME is a Sharia’a compliant bank based in London. Led by a management team that brings together a combination of experienced international bankers and leading experts in Islamic finance, BLME’s key business areas include: Wealth Management solutions, Mortgages, Commercial Real Estate Finance, and savings products. 

BLME is authorised by the PRA and regulated by the FCA and PRA. For more information, please visit our website.