United Trust Bank (UTB) was approached by an existing customer to support a 97-room purpose built student accommodation (PBSA) development in a popular south-west university city.
The borrower has a vertically integrated business model having built a strong inhouse construction management team, enabling them to control all stages along the construction supply chain. This substantial project comprises 97 student rooms set in clusters of 2-5 rooms over 7 storeys. The 8th storey provides a communal space and roof terrace whilst the ground floor has some commercial space including retail.
UTB was happy to provide the £9.4m of funding required to settle the original site acquisition funding and finance 100% of the construction costs plus professional and associated fees. Once complete, the customer intends to retain the scheme in their portfolio and refinance the development loan to a longer term investment facility.
|Loan Type||Development Finance|
|Loan Purpose||• To fund the construction of a 97-room purpose built student accommodation scheme|
|Special Features||• Refinanced land acquisition funding and provided 100%|
of build costs and
• Experienced in-house construction management team