UTB supports £15 million PBSA scheme in a South West university city

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.

Amount£9.4 million
Loan TypeDevelopment Finance
LocationSouth West
Term28 months
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
professional fees.

• Experienced in-house construction management team