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Purpose Built Student Accommodation Finance

MontpelierPF has over a decade of experience operating in the purpose built student accommodation (PBSA) sector.  Our extensive knowledge gives investors and developers access to market leading funding for both development finance and commercial term exit funding.

A PBSA bed scene

PBSA Funding Solutions

  • 80% of completed project value

  • Preferred terms for Russell Group locations

  • Direct let & nomination agreement funding

  • Ground up development Finance

  • Modular propositions welcome

  • 75% LTGDV / 90% LTC debt funding

  • Joint Venture/100% Funding

  • Commercial term exit lending 

  • No maximum loans

How Montpelier Private Finance Assists Our Clients

A students room within a purpose built student accommodation block

Specialist Insights

With specialised lenders offering a variety of products on this asset class we can offer you access to the best funding solution for your particular project.  We have extensive experience and detailed knowledge of lenders' specific requirements, ensuring a smooth process from application to completion.  You can read more on lenders' criteria here

An Attractive Proposition

Due to the excellent international reputation of the UK higher education sector, purpose built student accommodation (PBSA) has remained an attractive proposition for investors and developers in recent years. A variety of products are offered by lenders on a case by case basis.

Students in a shared living space in purpose built student accommodation
A beautifully designed apartment in a purpose built student accommodation block

Cost Effective Solutions

 Getting the right funding solution goes beyond just securing a great rate.  Through a detailed understanding of your project, it's structure and the specific timescales we will be able to advise on the most cost effective solution.   

Current Products 

Montpelier Private Finance sources funding from, but not limited to, family wealth offices, challenger banks, high street banks, private funds, pension funds and offshore institutions.  Below are just a small selection of the current funding opportunities offered by our lending partners.

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PBSA Development & Mezzanine Finance

  • A new lender to the UK market

  • Up to 75% LTGDV / 90% LTC gross lending (lower thereof)

  • Whole loans from £5 - £10m 

  • Mezzanine finance from £2m - £40m 

  • Modular construction welcome

  • Funding across major UK cities and London commuter towns

  • Execution of loans in just 4 weeks

A student holding a bag

Development Finance Up To 90% LTC

  • Bridging, stretch senior, mezzanine and preferred equity finance available 

  • Up to 90% LTC / 75% LTGDV gross lending (lower thereof)

  • Minimum debt quantum of £10m

  • Funding available for Direct and Nomination Agreements

  • Funding for schemes in the UK & Ireland (Dublin and Cork)

Students sitting on a bench studying

Commercial Term Lending At 75% LTV

  • Up to 75% LTV

  • Loans from £10m - £150m

  • No personal guarantees requried

  • Terms from 2-7 years

  • Funding available across UK & N. Ireland

Current Products

Case Studies

Edinburgh city skyline at dusk

257 bed scheme 

73% LTGDV facility 

£40m GDV

Modular construction 

University of Leicester campus

135 bed scheme 

68% LTGDV

£8.5m GDV

Standard construction

Nottingham Trent University campus

103 bed scheme 

62.5% LTGDV

£8.5m GDV

Standard construction

Purpose built student accommodation built with modular construction

PBSA Finance Explained

Want to learn more about PBSA finance?

If you are new to PBSA finance and want learn more about how to procure finance visit our 'PBSA Finance Explained' page.  Areas covered include:

  • Why PBSA is so popular

  • The factors to consider when obtaining funding

  • The types of funding available

Purpose built student accommodation
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