Future Generation secures its largest loan with a £62m facility from Maslow Capital for its Guildford student housing project

  • Guilden Park’ development sits in an area chronically underserved by Purpose Built Student Accommodation (PBSA)
  • The 533-bed scheme received planning permission on appeal in November 2018
  • Construction will begin immediately and complete in time for the 2021 academic year

 Student accommodation specialist Future Generation has today secured a £62million development loan from Maslow Capital to build a landmark development in Guildford.

This is Future Generation’s largest debt facility to date, for its largest ever scheme.

The six-storey, 533-bed Guilden Park project already has planning permission and is set for completion in time for the start of the 2021 academic year. Most of the scheme (84%) will be made up of shared apartments, while the remaining 16% will be studios.

With a gross development value in excess of £102million, the project will seek to meet huge demand in an area grossly underserved by Purpose Built Student Accommodation (PBSA). PBSA accounts for less than 1% of Guildford’s rental stock, with the vast majority of students currently renting from private landlords.

This is despite the Surrey town being home to four major educational institutions — the University of Surrey, Guildford College, the Academy of Contemporary Music and the University of Law.

Future Generation is a joint venture between developer Southern Grove and Tadhamon Capital. This will be the company’s third PBSA scheme to enter construction. Similar projects in Sheffield and Colchester, that were also supported by Maslow Capital, are currently under development and both due to complete before the start of the 2019/20 academic year. Guilden Park takes the total value of Maslow Capital loans across the three schemes to in excess of £100m.

In 2017, Future Generation embarked on an ambitious mission to build 10,000 student beds in five years, while simultaneously raising the quality of affordable student homes. To date, the firm has a pipeline of approximately 5,000 student beds.

Guilden Park’s architects, DMWR, have incorporated ground-floor courtyards, a gym and a signature Sky Lounge with a roof terrace overlooking the site’s leafy surroundings. The focus on these design aspects is driven by Future Generation’s awareness of mental well being and the positive effect the living environment can have.

Future Generation also partners with Samsung to provide high-quality technology through its buildings, and Guilden Park will be no exception. The scheme will feature Samsung air-conditioning, WiFi and TVs in every room as standard. The Sky Lounge will also boast a ‘Samsung Wall’ televisual display with surround sound. Construction will begin immediately.

Andrew Southern, Chairman of Southern Grove and Future Generation, commented:

“Maslow Capital understands the fundamentals of the student market and are themselves specialists in this sector. We’re delighted to partner with them again for what is the single biggest loan facility secured by Future Generation so far.

“Students flock to PBSA schemes because the quality they offer is so superior to that provided historically by private sector landlords.

“We chose Guildford because purpose-built student accommodation isn’t something this area has really seen yet on any meaningful scale. The demand is there and we are going to be heavily disrupting that market”.

Ellis Sher, Co-Founder of Maslow Capital, added:

“Student accommodation in the UK has exploded over the past decade as institutional investors have realised how rewarding it can be to offer students a better standard of living. We’re pleased to be working with Future Generation again on the strength of the quality of their projects and deep sector knowledge.”

“We are one of a handful of specialist development lenders that are able to write loans up to £150 million. The flexibility of our balance sheet allows us to support experienced developers like Future Generations who continue to evolve the PBSA space through bespoke offerings that go above and beyond the trends seen historically in the sector”.

“Maslow capital’s dedicated PBSA division is resourced by a team with considerable experience in this asset class. As a lender, we continue to provide developers with a specialist service from a team that understands the intricacies of the sector and this is reflected by the number of PBSA schemes we are funding as well as their size”.

Uncap your ambition with Maslow Capital (Video)

Maslow Capital is a leading provider of real estate development finance. We help developers realise their ambitions. We offer flexible funding solutions for professional developers across the UK undertaking residential, mixed-used, student, hotel and industrial developments.

Maslow announces a strong start to 2019 with the successful completion of eight transactions with a combined loan value over £100m

Maslow Capital, the specialist provider of real estate development finance, announces an excellent start to the year with the completion of a diverse range of development facilities that will see the delivery of 442,856 sq ft. of real estate assets covering residential, serviced apartments, student accommodation and retirement living.

With the completion of these deals, Maslow continues to demonstrate its deep sector and asset class knowledge which allows for the funding of complex deals across the UK. Strenghed by its depth of funding and recent high-profile additons to the team, Maslow continues to support capable developers in the delivery of their business plans notwithstanding the economic uncertainty facing the UK.

Commenting, Ellis Sher, Co-Founder and CEO of Maslow Capital, said:

“We are delighted with the start we have made to 2019, not only because of the quality of the transactions, but also their diversity. With the expansion of the Maslow team, we have more internal expertise to assess a wider array of deals which include specialist retirement living and serviced apartments. As we navigate the uncertain consequences of Brexit, we are committed to supporting our developers and working in partnership with them to deliver their real estate projects.”

Maslow is one of a handful of specialist development lenders who are able to write loans from £5 million with no upper limit and without rating agency or regulatory influence. The flexibility of Maslow’s balance sheet allows it to support multiple types of real estate and construction methodologies from self-build to fixed price and from part built to ground up.

Visit our deals page to see our latest completed schemes

Also see us featured in Property Week

Introducing our newest Originator, Emma Burke

Emma is a residential & commercial development finance specialist with a proven track record in building business relationships over the last 16 years in both the UK and Ireland.

Prior to joining Maslow Capital, Emma headed up Octopus Property’s Development Finance Team.

During her 3 years at Octopus, Emma was responsible for originating & structuring over £400m of development debt facilities and managing a team of 5 development finance specialists. 

Before joining Octopus, Emma was part of the Structured Property Finance team at Investec Private bank and was responsible for deal origination and the management of an existing portfolio. During her time at Investec, Emma structured development facilities for the construction of industrial units, hotels, residential development sites, large PRS schemes and serviced apartments.  

Emma holds a Bachelor of Business (Honours) Degree from National University of Ireland, Galway and has recently completed a leadership management course.

When asked what Emma will bring to the team Ellis Sher, Maslow Capital, Co-Founder and CEO said:

“Emma is driven, ambitious and has a terrific understanding of our market place. We are delighted that she has chosen to join us. Emma will play a central role in the Maslow origination team who together cover the length and breadth of the UK and where we have a broad appetite to fund real estate developments across residential, commercial, industrial, mixed use and purpose-built student accommodation.”

See us in Development Finance Today

Opinion Piece: Developers must know who they are borrowing from ahead of leverage and price

More than 10 years on from the global financial crisis, there is an abundance of liquidity for new speculative property developments, with lenders fiercely competing for a share of the market.  

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£100 million in loan facilities in a record-breaking month

June has been a record-breaking month for Maslow Capital; completing £100 million of new facilities across four deals. The transactions will see the delivery of 1,100 new residential and student accommodation units in Manchester and Glasgow.

In total, these developments will deliver in excess of 847,000 sq. ft. of new residential and student accommodation. Three of the deals, totalling over 736,000 sq. ft. are located in Manchester, with the remaining deal providing 111,000 sq. ft. of purpose-built student accommodation in Glasgow.

Maslow’s record month follows more than £200 million of new development loans so far in 2018; a 20% increase compared with the same period last year. The addition of these four deals takes the total to over £300 million for the six-month period ended June 2018.

These recent closings highlight the strong demand for alternative sources of finance from UK developers. It also reinforces Maslow’s view that there is a broadening appetite for specialist lending.

Sky Mapson, Lead PBSA and Residential Originator at Maslow Capital, who is responsible for the four deals, said:

“The closing of these deals is further proof that not only is the demand out there for specialist funding but that developers are connecting in a big way with providers who combine a flexible approach with real expertise. That we can close £100m in facilities in just one month is a testament to the confidence that we and our clients have in certain parts of the UK and the chronic need for new housing in these cities. These deals demonstrate that we have a strong appetite to support regional developments across the country, providing loan facilities with an average size of £25m to experienced sponsors.”

June has been a tremendous month for Maslow following a strong start to 2018. Maslow Capital is delighted to meet the growing demand for alternative financing from developers throughout the country. In particular, continuing to see more and more opportunities across cities in the north and in Scotland – with Manchester and Glasgow two prime examples. Maslow expects this trend to continue throughout the year, as well as the broader trend of demand from clients for the unique combination of specialist knowledge, balance sheet strength, and structured credit facilities.

An exclusive feature was showcased by Real Estate Capital, read more here.

NEWS: 2018 kicking off with 4 deals, £74 million

Maslow is delighted to announce the completion of four exciting deals with a total of £74 million lent.

The four deals provide funding for new residential developments in London and Manchester, delivering more than 80 new apartments and new commercial space along with 211 student beds in Coventry, and 246 in Sheffield. In aggregate, the developments will deliver more than 195,000 sq. ft. of new accommodation in sought after locations.

Specifically, these loans will assist with the delivery of 18 new apartments and a new commercial unit at Halt Parade, London, NW9 arranged over six floors and the construction of 66 new flats which will be delivered in the Ancoats district of central Manchester, addressing continuing need in the city for well-located apartments.

In Coventry and Sheffield, the funding packages will see more than 450 new student beds brought to market in cities where university accommodation continues to be in high demand.  Both cities are growing as centres for education, and these new facilities, which will be located near main university campuses, will be completed in time for the 2018/19 academic year.

The deals represent a continuation of Maslow’s diversification of its exposure into different real estate market segments covering residential, mixed-use and purpose-built student accommodation across the UK.

Maslow Capital Purpose Built Student Accommodation (PBSA) Portfolio Update

We are a leading provider of development finance for the construction of purpose-built student accommodation (PBSA). To date, we have supported a number of developers with both senior and stretch senior finance facilities and we have a tremendous appetite to grow our loan book by supporting experienced developers with their PBSA schemes.

Next week we’ll be at the Property Week Student Accommodation Conference, and encourage anyone interested or involved in the Purpose Built Student Accommodation (PBSA) industry to attend the event and chat with Sky Mapson our PBSA specialist originator and his team at our exhibition stand.

Sky Mapson can be contacted on:
Email: sky.mapson@maslowcapital.com
Mobile: 07500 874 468
Landline: 0207 016 1465

Will they, won’t they? What to expect (or not) in the Autumn Budget

The Autumn Budget is almost upon us and, we have been mulling over what important changes we expect the Chancellor to make.

We anticipate that there will be a change to the way Stamp Duty is structured: the publication of Theresa May’s White Paper earlier in the year identified a broken housing market, and coupled with this and the slowdown nationally in transaction volumes off the back of political and economic uncertainty, change to stamp duty would be a logical next step to fix this.

What we think is unlikely, but not off the table completely, is that there will be any big adjustment at the top end of the market, in the +£1 million category. A small reduction in the charges at the prime end could have a big impact on liquidity, however this is probably not where the Chancellor will be focussed.

A more plausible scenario is another stamp duty holiday for first time buyers, similar to that between 2010 and 2012, when properties below £250,000 were exempt from stamp duty. A move like this is unlikely to have much impact in London where average property prices are £483,568, according to HM Land Registry, but could help improve liquidity in the rest of the UK.  A stamp duty holiday together with the continuation of Help to Buy, will benefit this important part of the housing sector.

There have also been calls for the Government to remove stamp duty entirely for older homeowners, to encourage people to downsize. It’s hard to see how this could be implemented but supporters say this would help increase the supply of family sized homes. A guise of this in conjunction with further stimulus for increasing housing supply, rather than just supporting demand, may be at the forefront of the Budget. For example, the government could give corporate tax reductions to encourage developers to deliver new housing in certain areas where there is a particular supply and demand imbalance.

Lastly, in a bid to win back some popularity amongst the younger generations, we anticipate a probable shake-up of student loans, something that would help support the student sector.

Watch this space…