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UK bank Shawbrook has launched a dedicated lending proposition for the purpose-built student accommodation (PBSA) sector as investor demand for student housing continues to rise.
Shawbrook said it has already completed several deals in the sector and is now rolling out dedicated pricing and lending criteria for experienced landlords and investors.
The move reflects continued appetite for high-quality student accommodation in major university cities, where demand remains strong and operators face pressure to modernise existing stock.
Under the new offer, Shawbrook will provide loans ranging from £500,000 to £35 million, with rates starting at 5.99 per cent, with loan-to-value of up to 75 per cent on interest-only facilities and repayment terms of up to 25 years.
Deals worth more than £2.5 million will be handled by the bank’s structured real estate teams.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “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.”
Highlights:
• Shawbrook has launched a dedicated lending proposition for the PBSA sector as investor demand for student housing continues to rise
• It will provide loans ranging from £500,000 to £35 million, with rates starting at 5.99 per cent, with loan-to-value of up to 75 per cent on interest-only facilities and repayment terms of up to 25 years
• Deals worth more than £2.5 million will be handled by the bank’s structured real estate teams
