United Trust Bank (UTB) has expanded its living sector proposition with the launch of a new range of lending solutions for Purpose-Built Student Accommodation (PBSA).
The facilities are aimed at experienced developers and will support projects in established university locations across England and Wales.
Loans will be available for new-build, conversion and refurbishment projects, with committed terms of up to 60 months to cover all phases of development, from acquisition through to stabilisation and long-term investment.
Facilities range from £7.5m to £35m, with up to 65% loan to gross development value (LTGDV) and up to 85% loan to cost (LTC). Project phasing and planning gain will also be considered.
Earlier this year, UTB appointed Andy Thomson as senior director – operational real estate to strengthen its offering in the living sector.
Thomson has been working alongside Ben Jenkinson, head of product and strategy, to develop UTB’s living sector finance, which also covers Build to Rent and Co-Living schemes.
Adam Bovingdon, head of property development at United Trust Bank, said: “The UK PBSA sector presents exciting opportunities to developers and for UTB in supporting schemes which will help to address the shortage of good quality student accommodation.
“We look forward to supporting experienced developers and operators from initial land or building acquisition, through construction, and stabilisation and into a long-term interest-only investment loan.
“This end-to-end solution simplifies the finances for PBSA developers, enabling them to concentrate on delivering successful schemes, without the need to switch lenders.
“I am confident that our new offering will be warmly received by the market, enabling many high-quality new homes for students over the coming years.”
