Aternative property lending group Zorin Finance has completed two Purpose Built Student Accommodation (PBSA) transactions with Rengen Developments and Longacre Developments. The £25 million loan will be split into a development and an investment term loan secured against two mixed-use sites in central Bath.
The Scala, Oldfield Park, Bath
The £13 million facility will support the purchase and subsequent redevelopment of a high-profile site at Oldfield Park known as “The Scala”. Once complete, the student-led scheme, will comprise newbuild PBSA (107 beds), a refurbished retail store and 5,000 sq ft of community space.
Eveleigh & Riverside House, Grove Street, Bath
The £12 million 5-year investment facility, a JV between Rengen and Longacre Development Limited, will allow the partners to exit their existing development loan which enabled the redevelopment of a former office known as Eveleigh House. The refurbished Property now provides PBSA (62 beds) and 6,000 sq ft of office space located adjacent to the famous Pulteney Bridge along the river Avon.
Rengen is an experienced developer specialising in the boutique PBSA sector. Based in the Southwest and focusing on the Bristol and Bath market, Rengen has a wealth of local market knowledge including their own dedicated in-house management team. The latest transactions are Zorin’s second and third with Rengen and part of a wider growing relationship.
The two loans take Zorin’s lending to date over £1.2 billion. It has now funded a total of 210 loans with zero capital losses.
Andrew Scotting, Chief Lending Officer of Zorin Finance said:
“We are delighted to announce our continued support for Rengen Developments. This is a great example of Zorin’s ability to offer seamless end-to-end funding solutions by providing both development finance and long-term investment facilities.”
Iestyn Lewis, CEO of Rengen Developments said:
“After four and a half years, it was great to combine with the team at Zorin and secure an appropriate development package. It’s taken a substantial amount of skill and funding to get to this point, the simplicity of implementing the finance with Zorin was a pleasure.”
As seen on Development Finance Today.