Latest loan brings combined total financing commitments to £1.1 billion
Eldridge Real Estate Credit, the real estate investing strategy of Eldridge Capital Management, and Vita Group, a leading UK and European developer and operator of premium student and residential co-living brands, today announced the continued expansion of their long-standing partnership. This marks their tenth transaction, with a combined total of £1.1 billion in financing commitments.
Since 2020, Eldridge and Vita Group have partnered on ten developments across purpose-built student accommodation (“PBSA”) and co-living, delivering more than 7,500 beds across the UK and Spain.
The partnership has helped scale Vita’s investment-grade living platform, which unites development, operations, and brand to deliver high-quality, service-led assets across Europe’s key cities. Each brand within the Group responds to a different stage of modern urban life, together meeting the growing demand for high-quality, experience-driven living.
Eldridge Real Estate Credit focuses on investing in opportunities throughout the US, UK, and Europe, including term, construction, transitional, and special situation opportunities across the capital structure. The platform has originated over $10 billion in loans, leveraging an experienced team with a disciplined approach seeking to create long-term value.
“Over the past five years, our partnership with Vita has been a testament to our shared vision and commitment to long-term success,” said Graham Keable, Managing Director at Eldridge Capital Management. “This tenth transaction together not only underscores Vita’s proven expertise in the space, but also reinforces our confidence in the continued growth and resilience of the UK and European living sector.”
“The developments we’ve delivered together have consistently outperformed benchmarks, validating the strength of our model across student and co-living assets,” said Max Bielby, Chief Operating Officer at Vita Group Our relationship is a powerful example of how long-term financing partnerships, combined with our integrated approach to design, development, and operation, address a clear market need and deliver sustainable value.”
Backed by ongoing undersupply and continued strong international student demand, Eldridge and Vita have delivered high-quality PBSA assets in a high-growth market. The teams believe their partnership demonstrates best-in-class execution, combining stable returns and robust downside protection underpinned by resilient credit structuring.
The latest transaction is a £146.1 million senior development loan for Vita Student First Street, an 861-bed PBSA scheme in Manchester’s First Street regeneration area. Construction is already underway following Building Safety Act approval, with completion targeted for June 2028 ahead of the 2028/29 academic year. The 170,000 sq ft development expands Vita Student’s presence in Manchester, where its existing developments maintain occupancy rates of 95 to 99 percent.
“We are delighted to complete this plot sale to Vita which will continue the delivery of the First Street masterplan at this strategic gateway into the city,” said John Hughes, Managing Director at Ask Real Estate, the landowner and developer of the First Street Estate.
Now one of Manchester’s most vibrant neighbourhoods, this latest Vita development will further add to the exciting mix of businesses and residents already located at First Street, all of which are supported by a rich blend of amenities and facilities.”
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