Student Accommodation Refinance Following Development Completion

Schools-Finance successfully arranged a £7.84 million commercial mortgage to refinance a newly completed student accommodation development comprising 94 purpose-built apartments.

Following the completion of the scheme, the developer wanted to retain ownership of the asset and move from development finance onto a long-term funding solution. The existing borrowing structure included multiple layers of debt, making the refinance an important step in stabilising the project’s long-term finances.

The transaction took place during the Covid-19 pandemic, at a time when occupancy levels across the student accommodation sector were temporarily lower than normal. Despite the short-term challenges affecting the market, the development was well positioned to benefit from a return to normal student demand once restrictions eased.

Schools-Finance worked closely with all parties involved to demonstrate the long-term strength of the asset and its future occupancy potential. By presenting the scheme’s performance and future viability, a refinancing solution was secured against the freehold property, allowing the developer to replace existing funding and retain ownership of the completed asset.