Purpose Built Student Acommodation Finance
We are a specialist broker in securing purpose built student accommodation finance. From application to completion we give investors access to specialist lenders in order to secure market leading funding for both development finance and commercial term exit finance
MontpelierPF prides itself in being at the forefront of the PBSA debt finance market. In light of the stretched senior market all but disappearing overnight when Covid19 hit, we had been working closely with senior and mezz lenders, so as to ensure we can still look to achieve the gearing that was being achieved back in 2019. 90% loan to cost, equating to just over £20m, for a consented PBSA studio scheme in Edinburgh,
PBSA Development at 90% LTC
PBSA Bridging at 103% loan to contract purchase price
Our seasoned developer client had exchanged contracts for a consented Purpose Built Student Accommodation scheme (PBSA) for a nominal consideration, with a long-stop completion. The developer utilised the 9mths between exchange and completion to improve the existing internal configuration through a Section 73 agreement, thus enabling an additional 27 beds. This uplift in the number of beds achieved an increase on the Residual Land Value of £1.5m, even before our client had completed on the acquisition.
The developer, who typically acquires half a dozen sites a year, needed to commit as little of his own funds as possible to enable completion, whilst ensuring he retains a healthy cashflow.
Facility Provided: We secured bridging finance; leveraged against the uplifted Residual Land Value for this purchase, rather than against the contract purchase price. Ultimately achieving a gross advance of 103% loan to contract purchase price / 94% net. Pricing was at 1% per month, with a 2% lender facility fee and no exit fee, over a 9 month term
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