Short-term lender, Glenhawk, has announced that it has completed an £11.7m loan to support a borrower refinancing a newly built purpose-built student accommodation (PBSA) scheme in Aberdeen, Scotland.
The borrower needed to refinance an existing development finance facility for the scheme, securing a new loan that would give them time to embed a new managing agent while increasing occupancy levels and rental income.
Flexibility and sector knowledge were central to the deal. The scheme was temporarily under-occupied, through no fault of the borrower, but a clear plan for achieving full occupancy was already in place. That meant the borrower needed flexibility around interest payments in the interim.
Glenhawk structured the £11.7m loan over a two-year term, with a bespoke interest arrangement designed to match letting uplifts as they were achieved.
“This was a complex case that required a flexible, understanding approach,” said Chris Daly, managing director of structured real estate at Glenhawk (pictured).
“The borrower needed to work with a lender that has experience within the PBSA sector, and can get to grips with the nuances and unique challenges this form of investment can provide. Not only that, they needed a lender able to deliver a bespoke funding structure which took into account the individual elements of the case, and set them up for success in enacting their business plan.”
“With deals like this, it’s vital for brokers to be able to work with lenders who are able to dig into the details, build a broader understanding of the borrower and what they are trying to achieve, and then deliver a funding structure which truly works for all parties. That approach is what we have become known for at Glenhawk, and is helping us to become a go-to lender for less straightforward cases.”
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