StudentSheffield
£22m
214-bed PBSA development, senior at 65% of cost with interest rolled to practical completion and a nomination agreement in place.
Issue — delivery required before the academic year.
What we fund
Operational asset transactions we fund
Development and investment across student, care and healthcare property.
01
Purpose-built student accommodation development
02
PBSA investment acquisition and refinance
03
Care home acquisition, single asset and portfolio
04
Ground-up care and specialist supported living development
05
Healthcare premises including primary care and clinics
06
Conversion of hotels or offices to student or care use
07
Refinance of an operator portfolio onto a single facility
08
Capex for registration compliance and room upgrades
Structures
Structures we place
These are trading businesses inside buildings. The structure separates the property from the operation where it needs to.
Development facility on cost
60–70% of total cost with interest rolled to practical completion, drawn against monitoring surveyor certificates.
Investment facility on NOI
Sized on net operating income with cover tested at a stressed rate, term of three to five years, on stabilised trading assets.
Opco/propco structure
Property held separately from the operating entity on an arm's-length lease, which widens the lender list and can improve leverage.
Capex and registration tranche
Committed funding for room upgrades, compliance works and registration requirements drawn against certified works.
Underwriting
What lenders test
Operator quality is the first question, not the third.
Operator covenant and rating
Track record, financial strength and, for care, the current CQC or equivalent rating. A rating below good restricts the lender list sharply and can stop a transaction outright.
Occupancy and nominations
For PBSA, nomination agreements and the local supply pipeline. For care, occupancy by funding source — private fee, local authority, NHS — since the mix determines income durability.
EBITDARM cover
Earnings before rent and management are tested against debt service and rent together. Where opco and propco are split, credit checks the lease is affordable to the operator, not just to the lender.
Track record
Selected operational asset transactions
CareCheshire
£13.6m
Acquisition of two care homes with 118 beds, opco/propco structure and a £1.2m compliance capex tranche.
Issue — one home rated requires improvement at exchange.
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.
Does a CQC rating affect funding?
Significantly. A rating of good or outstanding keeps the full lender list available; requires improvement narrows it and usually means lower leverage and a capex condition attached to drawdown.
Do you fund PBSA without nomination agreements?
Yes, though leverage is lower. A nomination agreement with a university materially improves both terms and the lender list.
What is an opco/propco structure and why use one?
The property is held in one entity and the operating business in another on an arm's-length lease. It widens the lender universe, since property lenders can advance against the propco without underwriting the trading business directly.
Can conversion to student or care use be funded?
Yes, where consent and registration route are in place. The facility is sized on cost with a capex tranche and assessed against the post-conversion investment value.
Enquire
Send us the asset
Beds, operator, tenure and cost or price is enough for a first view.
Direct line
+44 (0)20 [ 0000 0000 ]