Study Inn Group has secured a £22.6 million finance facility from Paragon Development Finance to support the new Nottingham student accommodation scheme
The funding has been used for the acquisition of the site on Triumph Road and the development of the 270-bed Purpose Built Student Accommodation (PBSA) scheme.
Paragon has previously worked with Study Inn Group – the Nottingham scheme marks the tenth facility that they have provided. Overall, this has supported the development of over 2,100 PBSA bed spaces across the UK.
Paragon’s stabilisation loan facility
Paragon senior relationship director Simon Dekker and senior portfolio manager Craig Seaborne have overseen the funding.
The deal is the first to feature Paragon’s stabilisation loan facility – this covers the period following the completion of development until the scheme has seasoned with student occupancy for up to two academic years. Once the Nottingham student accommodation scheme is complete, the development will be refinanced onto an 18-month stabilisation facility.
The new stablisation facility allows Paragon to support a developer through the full lifecycle of a PBSA development, from acquisition of a site without planning and pending approval to the development phase and onto a stabilisation facility post practical completion and opening of the scheme.
The Nottingham student accommodation scheme includes everything a student could possibly want
- study space
- wellness spa
- sauna
- steam room
- hot beds
- gym
- yoga studio
- games room
- lounge
- big-screen cinema room
- 24/7 onsite management
- room cleaning and linen services
- superfast Wi-Fi
- bicycle parking
Located adjacent to the University of Nottingham’s Jubilee Campus, the Nottingham student accommodation scheme will be ready in time for the 2022/23 academic year.
‘Paragon Development Finance support has been integral to this scheme’
Marcus Hook, group finance director at Study Inn, commented:
“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’s technical understanding of the development process and the pressures facing developers make them an ideal partner and we are pleased to be working with them again.”
Paragon development finance senior relationship director Simon Dekker added:
“We were delighted to have been able to continue our relationship with Study Inn and support the developer in serving the student market. The company has forged an excellent reputation in this space, putting student welfare and experience at the heart of its developments.
“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.”
