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KKR and Puma to lend £500m across UK living sector
Private equity firm KKR and lender Puma Property Finance have formed a joint venture to lend up to £500m to the UK living sector.
KKR and Puma to lend £500m across UK living sector #UKhousingPrivate equity firm KKR and lender Puma Property Finance have formed a joint venture to lend up to £500m to the UK living sector #UKhousingThe joint venture, between Puma and private credit funds, clients and accounts managed or advised by KKR, will provide up to £500m in senior development and stabilisation loans to fund build-to-rent (BTR), purpose-built student accommodation (PBSA) and build-to-sell schemes.
It will provide scaled access to capital in undersupplied UK housing markets. The three-year forward-flow partnership will target loans between £20m to £75m.
The platform will also be supported by a senior credit facility provided by a major international bank. Puma Property Finance told Inside Housing Living that it could not disclose the bank’s name.
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The partnership will enable Puma to expand its capacity in the £20m+ loan segment, where it believes demand for institutional capital to outpace supply.
Demand for funding is reflective of the continued shift towards non-bank lenders in UK development finance, which together accounted for 57% of all commercial development lending last year. Throughout 2025, the UK living sectors attracted investment of £12bn.
Anirban Ghosh, managing director at KKR, said: “We believe this platform is well positioned to support experienced developers delivering much-needed housing across the country, combining Puma’s local expertise and origination capabilities with KKR’s global credit platform and disciplined underwriting approach.”
Paul Frost, managing director of Puma Property Finance, said: “This new joint venture provides our origination teams with access to attractively priced, scalable capital to support best-in-class developers across the UK living sectors.”
Since inception in 2012, Puma has provided over £2bn of UK real estate-backed loans and developed long-standing relationships with sponsors across the residential and student accommodation sector.
In the past year, Puma exceeded £2bn of loans provided to date and announced the first close of Puma Real Estate Secured Credit Fund.
Last month, McLaren Property secured a £20m loan provided by Puma Property Finance to build a 145-studio co-living scheme in Exeter City Centre. This is the first partnership between McLaren Property and Puma Property Finance.
Last year, private equity giant Blackstone and a finance provider partnered to lend £2bn across the living sector in the UK and continental Europe. The loans primarily target real estate owners and developers in PBSA, co-living, rental and for-sale housing in the UK and across core markets in continental Europe.
The partnership is intended to provide financing solutions for developers in the living sector across Europe, where there has been a rising demand for private credit.
Banks have continued to reduce real estate debt lending, while there is approximately £873bn of commercial real estate debt outstanding and £271bn in annual origination.
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