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RedOak Refinances PBSA in Nottingham

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

RedOak Property has finalised a £21.5m senior loan facility for a block of purpose-built student accommodation (PBSA) in Nottingham.

Real estate investment manager DWS and Natwest Markets have refinanced an existing senior loan at 65% LTV.

Situated in Talbot Street, the 330-bed PBSA benefits from a long-term lease to Unipol Student Homes.

Dubbed Sandhills, the property is RedOak's third PBSA development in the East Midlands. Their latest nine-storey scheme consists mainly of cluster flats containing between five and seven beds.

The development is anchoring the launch of a new student property fund, Student Fund 1, to invest in PBSA near established UK universities.

Commenting on the deal, Guy Norman, director at RedOak property, said: "This refinance fits with our business strategy of retaining the asset in the long-term and reflects our commitment to the purpose-built student accommodation market."

"This transaction demonstrates the resilience of the sector, and the strong fundamentals of this asset in providing high quality and affordable purpose-built accommodation close to Nottingham Trent University campus."

"In what has been a challenging year, our new relationship with DWS and NatWest is a positive sign of the long-term confidence in the student accommodation market by institutional lenders."