A portfolio of eleven student houses in the British university cities of Coventry and Cardiff has completed a £4.1 million refinancing. The credit facility was provided by Secure Trust Bank Business Finance and secures the long-term capital base of the standing assets.
The agreement has a fixed term of five years and covers a total portfolio of 80 rooms. The overall portfolio currently generates annual rental income of approximately £540,000. Both Coventry in the West Midlands and the Welsh capital Cardiff are characterised by continuous demand for student accommodation.
Terms and scope of the facility
With the provision of the £4.1 million in funding by Secure Trust Bank Business Finance, the owner is focusing on stability in the operation of the eleven residential properties. The five-year term provides a reliable planning horizon for managing the decentralised residential stock across both cities.
- —Transaction volume: Refinancing facility of £4.1 million
- —Lender: Secure Trust Bank Business Finance
- —Facility term: Five years
- —Portfolio structure: Eleven residential properties with a total of 80 rooms
- —Income: Annual rental income of approximately £540,000
High-yielding segment in the student housing market
The income of around £540,000 per year highlights the solid occupancy of the 80 rooms. Student accommodation in established university cities traditionally benefits from stable tenant demand, as local educational institutions rely continuously on suitable housing provision.
The conclusion of this five-year agreement also demonstrates the sustained willingness of specialised lenders to provide dependable support for assets in the student accommodation sector. With this facility, Secure Trust Bank Business Finance puts the operational management of the portfolio on a viable foundation.
