Glenhawk has completed a £11.7m loan to support the refinance of a newly created purpose-built student accommodation (PBSA) scheme in Aberdeen.
The borrower sought to refinance an existing development finance facility with a new loan that would provide time to implement their business plan, appoint a new managing agent, and increase occupancy levels and rental income at the scheme.
The case required flexibility due to the property being temporarily under-occupied, despite a clear strategy to reach full occupancy.
The borrower therefore needed a funding structure that allowed for flexibility around interest payments during the stabilisation period.
Glenhawk arranged the £11.7m facility over a two-year term, with a bespoke interest structure designed to align with expected increases in letting performance.
Chris Daly, managing director, structured real estate at Glenhawk, said: “This was a complex case that required a flexible, understanding approach.
“The borrower needed to work with a lender that has experience within the PBSA sector, and can get to grips with the nuances and unique challenges this form of investment can provide.
“Not only that, they needed a lender able to deliver a bespoke funding structure which took into account the individual elements of the case, and sets them up for success in enacting their business plan.”
He added: “With deals like this, it’s vital for brokers to be able to work with lenders who are able to dig into the details, build a broader understanding of the borrower and what they are trying to achieve, and then deliver a funding structure which truly works for all parties.
“That approach is what we have become known for at Glenhawk, and is helping us to become a go-to lender for less straightforward cases.”
