Shawbrook has recently launched a dedicated finance proposition specifically tailored for Purpose-Built Student Accommodation (PBSA), responding to the growing demand from brokers and investors for specialised financing within the sector. With a clear focus on facilitating transactions in this competitive market, Shawbrook has already successfully completed various PBSA transactions, showcasing their commitment to supporting experienced landlords in the field.
Details of the Proposition
This newly introduced proposition offers loans ranging from £500,000 to £35 million, with competitive interest rates commencing at 5.99%. Borrowers can benefit from up to 75% loan-to-value (LTV) on interest-only facilities, with flexible terms extending up to 25 years. Notably, larger transactions exceeding £2.5 million will receive specialised support from Shawbrook’s Structured Real Estate team, acknowledging the unique structuring needs often encountered in PBSA developments and investment strategies.
Market Insights
Daryl Norkett, Director of Real Estate Proposition at Shawbrook, commented on the rising demand for this tailored approach: “We’ve seen increasing demand from brokers and professional investors financing PBSA assets – particularly where borrowers need a lender that genuinely understands how these deals work. Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending. A dedicated proposition means we can give brokers and their clients the certainty and expertise they need from the outset.” This statement underscores Shawbrook’s commitment to providing a thorough understanding of the complexities inherent in the PBSA market.