Three purpose-built student accommodation sites across the UK have secured a £44.3m PBSA loan from Secure Trust Bank (STB) Real Estate Finance, with the facilities located in Glasgow, Sheffield and Leeds.
The sites were developed and/or refurbished by Urbanite, a specialist PBSA developer backed by private equity firm Prescient Capital. Prescient used the three-year loan facility to refinance the portfolio and stabilise the assets ahead of deciding on a longer-term strategy.
Glasgow, Sheffield and Leeds sites secured in PBSA loan deal
Glasgow's Clyde Court (pictured) and Sheffield's Electric Press are both recent builds, constructed to a high specification. The third site, The Leatherworks in Leeds, carries a distinct historical character, with part of the property classified as a listed building. It is also gated to give students a campus-like feel, with a central hub designed to foster a sense of community.
The deal was introduced to STB by Clive Offord of Cofford & Co Property Finance, who has an established relationship with the borrower. Offord brought the two parties together based on STB's reputation and its recent activity in both the PBSA market and the north of the UK.
"When we were looking at the refinancing of these three PBSA assets, our main considerations were competitive pricing on such a large loan and reliability in a timely delivery," said Doug Friend, director at Prescient Capital.
"We hadn't worked with Secure Trust Bank previously, but our long-term contact Clive Offord had heard positive things about the company, and we were impressed with its pricing structure and commitment to providing us with a bespoke loan that works for our ongoing strategy."
STB's Danny Thornton, relationship director at STB Real Estate Finance, welcomed the introduction. "It's always great when a client is recommended to us based on our previous performance and good reputation in the market," he said.
"It's even better when it's for a large-scale, complex project such as this one. With a loan of over £44m required to refinance three PBSA sites across the UK, this project came with its own unique set of challenges, but the strong relationship and flexible approach between our teams, the introducer and the borrower meant we could overcome them in a smooth and professional manner."
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