Summary:
- FRP Real Estate Advisory arranged a £4.1m fixed-rate commercial term facility at 72% LTV to refinance a newly built 38-bed PBSA block in York, secured by a 25-year lease to a local university and structured to maximise drawdown efficiency before lease activation.
- The borrower obtained planning consent to add two student rooms during the pre-completion phase, increasing rental yield through an amended agreement for lease, supported by a tailored interest reserve bridging funding before rental payments commence.
- The transaction highlights private capital’s growing role amid Basel 3.1 constraints on bank lending for PBSA, with FRP demonstrating that market rent projections under a direct-let model exceed the university lease rent, enabling a competitive 6.25% fixed interest rate facility.
Original article:
https://mortgagesoup.co.uk/frp-arranges-4-1m-refinance-for-york-student-accommodation-scheme/
