Philip Gould

Avamore completes its first student accommodation deal

Avamore Capital has completed an acquisition bridging loan of around £2.2m secured against a purpose-built student accommodation (PBSA) asset in Coventry.

This was Avamore’s first transaction secured against a PBSA scheme — a 105-room accommodation block — and was for a UK-based foreign national customer.

The 12-month loan was provided at 60.4% LTV, with the borrower benefiting from a sale and lease back agreement with the University of Coventry.

The borrower was represented by Premier Solicitors, Avamore by Teacher Stern, while the valuation was conducted by Cushman & Wakefield.

There is an opportunity for the scheme to be refurbished in the future to improve the specification, while it also has the potential to be converted into a hotel or PRS accommodation.

Philip Gould, senior underwriter at Avamore Capital (pictured above), who led the transaction, said: “This was a great case to work on. 

“It was our first ever student accommodation deal and having completed this one, we hope to do more in the future. 

“The borrower was under immense time pressure and so we worked very quickly to become comfortable with an asset type which we have not previously worked with. 

“One of the most important things for us was the security of the exit; the scheme is currently 100% occupied and has been so for the past 20 years, which provides us with great comfort. 

“Furthermore, the sale and lease back agreement with the university provided a secured cash flow in the medium term, which will allow the borrower the necessary time to achieve their long-term aspirations for the property.”

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