Clyde Court, part of a significant riverside regeneration initiative, has garnered attention recently as Prescient and Urbanite have completed a £44.3 million refinancing agreement. This funding, sourced from Secure Trust Bank, is designated for three vital projects: the Electric Press in Sheffield, the Leatherworks in Leeds, and Clyde Court in Glasgow. These developments are part of a broader collaborative effort between Prescient and Urbanite, a partnership that was established in 2021 with the ambitious goal of creating a portfolio of 2,000 student bedspaces across the UK.
Project Overview and Developments
The Leatherworks in Leeds is a historically listed structure that has been transformed to accommodate 460 cluster bedrooms, strategically located near both university campuses. Meanwhile, the Electric Press in Sheffield features 125 cluster bedrooms paired with two studio flats, catering to a diverse student demographic. Clyde Court in Glasgow complements these offerings with 169 studio bedrooms, designed to provide an upscale living experience for students.
Previous Sale Attempts and Financial Strategy
In 2024, Urbanite made a strategic move to divest these three properties, as part of a larger £130 million package that included additional sites in York and Leeds. However, this refinancing through Secure Trust Bank indicates a renewed focus on optimising their existing assets rather than selling them off. The loan, facilitated by Cofford & Co Property Finance, reflects a tailored financial strategy aimed at ensuring the sustainability and growth of these PBSA projects in a competitive market.
Banking Partnership and Insights
Danny Thornton, the relationship director at STB Real Estate Finance, expressed enthusiasm regarding the collaboration, stating, “It’s always great when a client is recommended to us based on our previous performance and good reputation in the market.” He acknowledged the unique challenges associated with refinancing three significant PBSA sites, emphasising the importance of the strong relationships and adaptable approaches that facilitated a seamless process.
Strategic Considerations for Future Growth
Doug Friend, director at Prescient Capital, articulated the crucial factors in their decision-making process regarding the refinancing, notably competitive pricing and timely execution. Although they had not collaborated with Secure Trust Bank before, positive feedback from long-term contacts, particularly Clive Offord from Cofford, encouraged them to pursue this opportunity. Friend noted their satisfaction with the bank’s pricing structure, stating, “We were impressed with its pricing structure and commitment to providing us with a bespoke loan that works for our ongoing strategy.” This reflects the increasing importance of flexible financing solutions in the evolving PBSA landscape.
This recent refinancing deal not only secures the financial future of these projects but also highlights the ongoing demand for quality student accommodation in the UK. As urban regeneration continues to shape the landscape, partnerships like those between Prescient and Urbanite are vital in addressing the needs of students and investors alike while contributing to the overall growth of the UK PBSA market.