Conygar has secured £47.5m in debt from Barclays Bank to complete work on the next phase of the Island Quarter in Nottingham.
The facilities will allow the AIM-listed developer to complete the construction and letting of its 693-bed student accommodation development by summer of 2024.
The student scheme is the latest phase of the 36-acre regeneration, which Conygar bought in 2016. A detailed application has been submitted for the next phase, which will feature a hotel, residential apartments and co-working space.
The maximum term of the combined facilities is three years, including a development facility for up to 27 months.
Chief executive Robert Ware said: “We are delighted to have secured the facilities with Barclays which now enables both the completion and also the subsequent letting of the student accommodation development at the Island Quarter and the further progression of the opening up of this exciting and substantial mixed-use development.”
Interest on the development facility is payable on a Sonia-linked floating rate basis for each interest period plus a margin of 3.25%, and interest is payable on the investment facility at the same Sonia rate plus a margin of 1.9%.
Conygar has also said it will raise £30m of additional capital through the issue of zero-dividend preference shares in a placing early this year.
The ZDP shares are expected to have a gross redemption yield equivalent to 7.5% per annum on the placing price and a term of five years.
The net proceeds will be used to continue the development of the Nottingham scheme, but may also be used to buy investment properties or for the group’s other development projects, at Haverfordwest in Pembrokeshire and Holyhead in Anglesey.
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