Capital Finance Group
Purpose Built Student Accommodation
Purpose-built student accommodation (PBSA) finance supports the development, acquisition or refinance of properties designed specifically for students. These schemes are usually larger, professionally managed buildings, and lenders treat them as a specialist commercial asset.
Speak to a Property Finance SpecialistPurpose Built Student Accommodation
The number of lenders active in student accommodation is smaller than in mainstream property, and each has its own view of location, scheme size and operator. We will help you present your project in detail and approach lenders with a genuine appetite for the sector.
Who it suits
- Developers building new student accommodation schemes
- Investors acquiring existing PBSA buildings
- Owners refinancing or releasing equity from an operational scheme
- Projects located close to universities with sustained student demand
How it works
- Development funding can be released in stages, similar to other development finance
- Investment finance is assessed on occupancy levels, rental income and the strength of the operator
- Lenders consider location, university links, nomination agreements and the local supply of student beds
- Facilities can be structured as development loans, bridging loans or longer-term investment facilities
Things to consider
- PBSA is a specialist sector, and lender appetite can vary with market conditions
- Income can depend on academic-year occupancy, so void periods and summer letting should be planned for
- Planning, fire safety and building regulations requirements can be significant
- Lenders will review the experience of the developer and the operator
- Security is taken over the property, and personal or corporate guarantees may be required
Developing or investing in student accommodation? Speak to an expert about specialist funding.
Finance is subject to status and lender criteria.
Discuss purpose built student accommodation
Developing or investing in student accommodation? Speak to an expert about specialist funding.
Speak to a Property Finance Specialist