Property developer Bricks Capital has sourced a £40 million (€45.7 million) loan to refinance a student accommodation development in Glasgow’s West End.
The senior debt was provided by Laxfield Capital’s £500 million debt fund, a vehicle targeting senior and whole loans at up to a 75 percent loan-to-value ratio across most real estate sectors in the UK.
The student accommodation property, TRUE Glasgow, has a 592-bed capacity, and is part of Bricks’ pipeline of new developments, with a growth target of up to 10,000 beds over the coming years.
Peritus Corporate Finance acted for the borrower alongside Pinsent Mason’s real estate finance team.
“This is another example of Laxfield providing flexible finance to a good sponsor with an impressive business plan,” said Alexandra Lanni, partner at Laxfield.
Student accommodation is attracting debt finance in the UK. In March, challenger bank OakNorth wrote a £17.5 million refinancing package to UK developer Ankor Property Group to back two student accommodation buildings in London.
Specialist lender Maslow Capital has also backed purpose-built student accommodation assets across the UK, in a bid to diversify its exposure.