"This was a complicated development impacted by the cost increases seen after Covid, local road closures, and the developer changing their strategy during the build"
- Neil Leitch - Hampshire Trust Bank
Hampshire Trust Bank has announced that it has completed an £8.4 million development for an 81-unit purpose-built student accommodation in York. The client, Urbanite Living, wanted to build the large PBSA in the heart of the city having previously delivered a similar scheme in the area – and faced various complications.
Additionally, in order to support the developer’s exit strategy, HTB provided a bolt-on stabilisation loan. The deal was completed within just two weeks, despite challenging circumstances, including a change of strategy and needing to raise additional funds. To assist the developer in other areas of their development pipeline, HTB released an additional £1.6m in a very short period of time.
As a result of the development finance facility, the client is well positioned to take on other opportunities they see in the market, as well as providing additional time to secure the sale of the property.
Neil Leitch, (pictured) managing director of development finance, commented: “This was a complicated development impacted by the cost increases seen after Covid, local road closures, and the developer changing their strategy during the build. Despite these hurdles, it's a ‘first class’ development - York is a vibrant student hub, home to two excellent universities.
"Our dedication lies in supporting developers to provide student accommodation that not only meets but surpasses expectations. HTB has both the agility and commercial awareness to adapt to the challenges which property developers face.
“HTB prides itself on being a flexible lender, able to support developers in getting their projects over the finishing line. The reality of development is that plans often have to change during the course of the work, which is why it’s so important for brokers and their developer clients to work with adaptable lenders that deliver the help and expertise needed to see a development through to the end, no matter how complex.”
