Edinburgh PBSA Scheme 

Edinburgh skyline including the catherdral and university

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

  • Funding available for both direct lets and nomination agreements

  • Preferred terms for Russell Group locations

  • Standard construction and modular propositions welcome

  • 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

  • Mezzanine finance up to 75% LTGDV

  • Hybrid mezzanine/equity finance for higher LTC's

  • Joint venture/equity to sit on top of senior debt

  • Commercial term exit lending for completed schemes

  • No maximum loan