Purpose-built student accommodation (PBSA) is an established asset class within the Living asset sector that continues to grow. The UK has many world class universities attracting both home grown and international students which continues to drive the demand for PBSA. Student numbers are rising and the need for high quality purpose built accommodation as opposed to more traditional housing of multiple occupation is evident. We see significant investor and operator demand demonstrated by continued investment and consolidation in the PBSA sector.
We are committed to supporting student focussed developers as they build out assets and can provide a minimum loan size of £20m and with no maximum loan size.
We offer up to 85% of cost and 75% of GDV upon stabilisation, allowing for the purchase of a site, construction charges, professional fees and interest.
While we prefer schemes with full planning permission, we will also finance those that require further consent.
Projects should generally fall within a 4 year term or less, and into the initial operational phase with up to a further two years stabilisation period.