Zorin Finance has provided a 36-month investment loan totalling £15.3 million secured against a PBSA asset in Bath.
Set across an entire restored Georgian terrace, the asset has now been trading successfully as student accommodation for one year. The 66 modern student beds have been fully let for the 24/25 academic year, and to meet growing demands part of the loan will provide a reserve to increase the number of beds to 81.
Bath is a mature and strong PBSA market with student growth since 2017/18 at 23%, 5% above the UK average. Considerable supplies constraints due to its World Heritage status and increasing student demand means the outlook continues to look positive. The PBSA asset will be particularly favourable to students with modern interior finishings, prime city centre location, and public transport to university campuses immediately adjacent.
Zorin has an established relationship with the borrower. They have an impressive knowledge of the student market, and long record in both developing and letting PBSA in this area.
Zorin’s investment loans are available for up to 5 years with max LTVs ranging from 60% to 75% depending on asset class, and with loan sizes between £5-£150m. Flexible debt structuring allows for the interest to be paid current with also an element of PIK.
Alex Banbury, Lending Director at Zorin Finance adds: “It is fantastic to have completed the refinance of a prime student asset in the centre of Bath that is fully let for the upcoming academic year. Our 3-year loan incorporates a capital expenditure facility to increase the number of beds, which will help to cater for the exceptional demand for student accommodation in the city.”