The demand for purpose-built student accommodation (PBSA) continues to grow and offer developers strong returns. It is a challenging market however and the journey from conception and funding through to completion can be complex.
We have a successful track record in supporting developers with both senior and stretch senior facilities to deliver their projects.
Loan size From £10m up to £300m
Maximum gearing Up to 90% of cost & 70% of GDV
Margins from 3.75%
We consider each potential development project on its own merits but below gives an indication of some key considerations when appraising a new student scheme.
- Borrower experience in the purpose-built student accommodation sector
- Location of asset e.g. proximity to university / amenities
- Demand for purpose-built student accommodation in the locality
- Potential for supply and demand rebalancing in the near term
- Operator experience
- Viability of exit plan e.g. refinance or sale
"At Maslow, we like the PBSA sector and have actively sought to increase our exposure to it by funding the development of some 3,000 beds. Our view is that student accommodation is a defensive asset class, year-on-year rental growth continues to move in the right direction, operating costs are well defined and there are plenty of institutionally backed platforms looking to buy built stock."