PRSGreater Manchester
£31m
148 build-to-rent apartments, forward funded. Senior at 68% LTC, institutional forward commitment at practical completion.
Issue — fixed-price contract required before credit.
What we fund
PRS transactions we fund
Development and investment, single block and multi-block, private and institutional exits.
01
Acquisition of tenanted apartment blocks en bloc
02
Ground-up build-to-rent development
03
Forward funding and forward commitment structures
04
En-bloc refinance of stabilised blocks
05
Office-to-residential conversion under permitted development
06
Acquisition of part-sold blocks with retained units
07
Portfolio refinance across multiple blocks
08
Building safety and cladding remediation capex
Structures
Structures we place
Development and investment structures diverge sharply here. Both are placed against the same evidenced rental assumptions.
Senior investment facility
65–70% of value on stabilised blocks, sized on passing rent with interest cover tested at a stressed rate over three to five years.
Senior development facility
65–70% of total cost with interest rolled to practical completion, drawn against monitoring surveyor certificates.
Forward funding and commitment
Institutional purchaser committed at practical completion, with the funder taking construction risk or the developer retaining it depending on structure.
Mezzanine and preferred equity
Placed behind senior to reduce sponsor equity on development schemes, typically to 85–90% of cost.
Underwriting
What lenders test
Three areas where PRS underwriting is stricter than it looks.
Gross to net
Credit does not lend against gross rent. Management, voids, bad debt, service charge shortfall and a sinking fund come out first, and the net figure is often 20–28% below gross.
Evidenced ERV
Rental assumptions need comparable evidence at unit level, not a scheme-wide average. Lenders discount aggressive ERVs rather than reject the deal, which shows up as lower leverage.
Exit and building safety
On development, credit wants the institutional exit documented. On existing stock, EWS1 status, cladding and Building Safety Act compliance now sit alongside valuation as a funding condition.
Track record
Selected PRS transactions
Apartment blocksBirmingham
£16.8m
En-bloc refinance of 84 tenanted apartments onto a five-year investment facility at 67% LTV.
Issue — remediation works outstanding on two cores.
General locations, clients unnamed. Completed facility sizes, illustrative only — not an indication of terms available to you.
Questions
Common questions
General information on how these facilities are structured and placed. Not advice, and not an indication of terms.
Do you fund build-to-rent development as well as investment?
Yes. Development facilities are sized on total cost with interest rolled to practical completion; investment facilities on stabilised blocks are sized on passing rent.
How is rent assessed for lending purposes?
On net operating income after management, voids, bad debt and service charge shortfall, with comparable evidence required at unit level rather than a scheme average.
Can you place forward funding structures?
Yes, including structures where an institutional purchaser commits at practical completion and where the developer retains construction risk.
Does cladding or building safety status affect funding?
Materially. EWS1 status and Building Safety Act compliance are now standard conditions on existing blocks, and remediation cost is usually funded through a separate tranche.
Enquire
Send us the scheme
Unit count, tenure, rental position and cost or price is enough for a first view.
Direct line
+44 (0)20 [ 0000 0000 ]