Student property developer Urbanite has secured a £14.8 million finance facility with Paragon Development Finance to support its latest purpose built student accommodation (PBSA) scheme in Leeds.
The company has successfully acquired the Sugarwell Court student accommodation block from Leeds Beckett University and will convert the site into cutting-edge student accommodation. The 20-month £14.8 million facility will enable Urbanite to acquire the site and undertake the development of a 457-bed PBSA scheme.
The funding is structured to include Paragon’s new stabilisation facility, which covers the period following the completion of a development until the scheme has seasoned with student occupancy for up to two academic years. Once the development is complete, the scheme will be refinanced onto an 18-month stabilisation facility.
The stabilisation facility means that Paragon can support a developer through the full lifecycle of a PBSA development, from acquisition of a site without planning and pending approval, the development phase and onto a stabilisation facility post practical completion and opening of the scheme.
The funding was led on behalf of the bank by relationship director Simon Dekker, with support from senior portfolio manager Craig Seaborne.
The latest funding with Urbanite is Paragon’s second deal with the company. Previously, Paragon funded a 127-bed PBSA scheme in Sheffield for £6.3 million, which is due for practical completion to meet the start of the academic year in 2022.
Timothy Smith, director at Urbanite, said: “Urbanite is thrilled to secure a secondary deal with Paragon, bringing forward this exciting scheme for upgraded state-of-the-art purpose build student accommodation in Leeds. We’re pleased to have acquired this site and to be able to convert it into bespoke student accommodation in a prime location in the centre of Leeds.
“We’ve built a great relationship with Simon and the team at Paragon; their support and understanding are gratefully received with the past two successful funding facilities.”
Simon Dekker, relationship director, said: “We were able to complete this finance facility in a short period of time to enable the customer to complete the acquisition of the site and commence development work. This is the second deal we have funded with Urbanite, which is building a great reputation in the PBSA market.”
