Edinburgh PBSA Scheme
Case Overview
Montpelier Private Finance was tasked with securing development finance for an experienced developer. The scheme; a 257 bed purpose built student accommodation (PBSA) in Edinburgh boasts state of the art facilities such self regulated underfloor heating and electronic key access. Amenities include a gym and cinema for the residents.
The scheme has welcomed a new to UK market, European modular construction provider who will manufacture the 214 pods to 95% completion in mainland Europe, before transporting to the site in Edinburgh. Despite the superior product, the lack of a UK track record, combined with concerns over the impacts of COVID-19 and Brexit provided an additional complexity to procuring funding for the client. However, Montpelier Private Finance was able to procure a £30m facility at 73% LTGDV for our client in time for the scheme to be built for the 2022/23 academic year.
Montpelier Private Finance has a deep understanding of the UK & Ireland student accommodation market, and works with a wide range of funding partners. Contact us here for more information.
PBSA Funding Solutions
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Funding available for both direct lets and nomination agreements
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Preferred terms for Russell Group locations
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Standard construction and modular propositions welcome
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90% LTC stretched senior debt funding / 75% Loan to Gross Development Value (LTGDV) (lower there of); keeping the transaction a pure debt proposition, rather than give away equity/profit share
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Mezzanine finance up to 75% LTGDV
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Hybrid mezzanine/equity finance for higher LTC's
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Joint venture/equity to sit on top of senior debt
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Commercial term exit lending for completed schemes
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No maximum loan