FRP Real Estate Advisory arranges £4.1m refinance for York PBSA scheme

By Bridging Loan Directory 4th June 2026

FRP Real Estate Advisory has arranged a £4.1m commercial term facility to refinance a newly built 38-bed purpose-built student accommodation (PBSA) scheme in York.

The facility was secured at 72% LTV against a property valued at £5.77m and is supported by a 25-year lease to a local university.

The transaction was completed ahead of the lease formally commencing in July, providing the borrower with liquidity and long-term refinancing certainty.

The deal was led by Philip Kay, Director at FRP Real Estate Advisory, who worked with the lender to structure funding around the period between practical completion and lease activation.

Prior to completion, the borrower secured planning consent to reconfigure the building and add two additional student rooms, enhancing the scheme’s rental potential and overall income profile.

Following the changes, FRP worked closely with the lender to secure full drawdown ahead of the lease commencement date through a tailored funding structure, including an interest reserve designed to bridge the period before rental income begins.

The transaction highlights continued lender appetite for stabilised and near-stabilised PBSA assets where income visibility is strong and the underlying fundamentals of the scheme are well understood.

Philip Kay, Director at FRP Real Estate Advisory, commented:

“Securing a high-leverage 72% LTV facility at a highly competitive 6.25% fixed rate on the back of an Agreement for Lease requires an exceptional level of lender comfort.

By optimising the building’s layout prior to lease activation, we were able to significantly drive up the asset’s yield, but it required a sophisticated funding structure to unlock that value early.

By designing a tailored interest reserve and demonstrating the robust standalone market value of the asset, we achieved an outstanding result.

This facility gives our client complete financial certainty and liquidity well ahead of the university lease activating this July.”