Student accommodation provider Study Inn Group has secured a £22.6m finance facility from Paragon Development Finance to support its new scheme in Nottingham.
The funding has allowed Study Inn to buy the site on Triumph Road for the development of a 270-bed PBSA scheme, and is the tenth facility Paragon has provided to the group. So far it has supported the development of more than 2,100 PBSA bed spaces across the UK.
The deal is the first to feature Paragon’s stabilisation loan 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 launch of 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.
Study Inn’s five-storey development will include study space, a wellness spa with a sauna, steam room and hot-beds, as well as a gym, yoga studio, games room, lounge and a big screen cinema room. There will also be 24/7 onsite management, room cleaning and linen services, superfast Wi-Fi and bicycle parking.
The development, which is adjacent to the University of Nottingham’s Jubilee Campus, will be ready in time for the 2022/23 academic year. It is Study Inn’s second site in Nottingham, following its 288-bed scheme on Talbot Street, adjacent to Nottingham Trent University, in 2020.
Marcus Hook, group finance director at Study Inn, said: “As a committed lender, Paragon Development Finance support has been integral to this scheme. Triumph Road will deliver a world-class experience for students, with en suite rooms complemented by top-end facilities. Given its proximity to the University of Nottingham, we are confident this development will prove popular with students.”
Paragon Development Finance senior relationship director Simon Dekker added: “The stabilisation feature means we can support PBSA developers from the start of their schemes to finish; from funding the purchase of development land or a building to convert, to the development costs, to the period after the development is complete and the scheme is occupied by students. This is unique in the market and shows our ability to structure our lending to support clients.”
As well as its two sites in Nottingham, Study Inn has student accommodation in Loughborough, Exeter and Bristol, with two further sites being delivered for the 2022/23 academic year in Leicester and Leeds.
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