Student accommodation provider Study Inn Group has secured a £22.6 million finance facility from Paragon Development Finance to support its new state-of-the-art scheme in Nottingham.
The funding has assisted the acquisition of the site on Triumph Road and the development of the 270-bed Purpose Built Student Accommodation (PBSA) scheme.
This is the tenth facility Paragon has provided to Study Inn Group, supporting the development of over 2,100 PBSA bed spaces across the UK. The funding was led by Paragon senior relationship director Simon Dekker and senior portfolio manager Craig Seaborne.
The deal is the first to feature Paragon’s stabilisation loan facility, which covers the period following the completion of a development until the scheme has seasoned with student occupancy for up to two academic years. Once the development is complete, the scheme will be refinanced onto an 18-month stabilisation facility.
The launch of the stabilisation facility means that Paragon can support a developer through the full lifecycle of a PBSA development, from acquisition of a site without planning and pending approval, the development phase and onto a stabilisation facility post practical completion and opening of the scheme.
Study Inn’s five-storey development boasts communal facilities such as study space, wellness spa, sauna, steam room, hot beds, gym, yoga studio, games room, lounge and a big screen cinema room. There will also be 24/7 onsite management, room cleaning and linen services, superfast Wi-Fi and bicycle parking.
The development, which is adjacent to the University of Nottingham’s Jubilee Campus, will be ready in time for the 2022/23 academic year. It is Study Inn’s second site in Nottingham, having opened 288 rooms in Talbot St, adjacent to Nottingham Trent University, in 2020.
Marcus Hook, group finance director at Study Inn, said: “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.”
