The micro-hotel sector, including capsule hotels, has grown by an average of 16.4% per year since 2012, outperforming traditional hostels in profitability per square foot.

The loan backs the joint venture between Valpre Capital and CKC Properties and will be used to acquire the landmark purpose-built student accommodation site.

The British bank gained regulatory approval in early 2015, and was founded by entrepreneurs Rishi Khosla and Joel Perlman.