Finance firm seals £8.2 million education deal

A commercial property finance firm has completed an £8.2 million education deal.

Pallas Capital has finalised a package to support the transformation of a vacant Leicester education hub into a 98-bed student accommodation venture.

Bosses say the 27-month development facility will fund the site’s conversion through to build completion.

They add the endeavour’s borrower – described as an experienced developer with a background in co-living schemes – will refinance onto a term facility once the scheme is fully let and income-generating.

Ryan Houssart, underwriter at London-based Pallas Capital, who worked with senior originator Mark Witherington on the deal, said: “Change of use schemes ask you to think beyond the build itself. 

“You need a clear picture of how the finished asset will actually work once it’s operational, and having a grounding in purpose-built student accomodation gave us real confidence in structuring this facility around the borrower’s exit from the outset. 

“It also helped that we were working with such a proactive and engaged developer.”

Pallas Capital has further offices in Australia and New Zealand.

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