Shawbrook has officially introduced a dedicated finance proposition for purpose-built student accommodation (PBSA), marking a significant step to cater to the evolving financial needs within this sector. This new offering allows for loans ranging from £500,000 to £35 million, with interest rates starting at 5.99%. The loans can go up to 75% loan-to-value (LTV) on interest-only facilities, with repayment terms available for as long as 25 years. For larger transactions exceeding £2.5 million, Shawbrook’s structured real estate team is on hand to provide additional support and expertise.
The Motivation Behind the Launch
This dedicated service has been launched in direct response to a marked increase in demand from brokers and investors seeking specialised financial solutions within the PBSA market. Daryl Norkett, who serves as the director of real estate proposition at Shawbrook, commented on the initiative, stating, “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.”
Benefits for Brokers and Investors
The introduction of a dedicated PBSA finance proposition allows Shawbrook to provide the necessary certainty and expertise that brokers and their clients require from the outset. This tailored approach is expected to enhance the overall efficiency of financing processes for PBSA projects, thereby facilitating smoother transactions and better outcomes for all parties involved.