Hectocorn recently arranged a £20,125,000 ground-up development facility for a UK-based property developer to deliver a new 200-bed purpose-built student accommodation (PBSA) scheme in Belfast, Northern Ireland.
The client was highly experienced but had encountered financial distress during the 2007/8 global financial crisis. While these issues were well in the past, they remained on the record and presented a significant hurdle when seeking institutional-grade funding — especially for a high-value development project in a specialist asset class like student housing.
The developer owned the site unencumbered and had secured full planning permission. They were now seeking senior debt to cover the majority of construction costs, with a view to completing and stabilising the asset before either refinancing or disposing of it post-completion.
Traditional lenders were hesitant due to the developer’s historical credit file and the relatively niche nature of PBSA in Belfast. However, the fundamentals of the scheme were strong — demand for student housing in the area remains high, and the product was well-positioned both in terms of location and specification.
Hectocorn successfully sourced a private lender who understood both the asset class and the client’s journey. We secured a development loan covering 78% of the total cost, representing 64% of the gross development value, with a 30-month term. The facility was priced at 5% + Bank of England Base Rate, reflecting the project’s scale and the residual credit history considerations.
This financing structure gave the client a fully funded path from shovel-ready through to completion, with flexibility built into the term to allow for stabilisation and sale.
Key Deal Highlights
- Loan amount: £20,125,000
- Loan-to-Cost: 78%
- Loan-to-GDV: 64%
- Asset: 200-bed PBSA scheme in Belfast
- Challenge: Legacy issues from the 2008 crisis
- Planning: Full planning secured pre-funding
This deal is a strong example of how Hectocorn helps experienced developers re-enter the market or scale new projects, even when traditional lenders are constrained by legacy credit files. If you’re navigating similar barriers or need structured finance for a complex development, we’re ready to help.
Funding Complex Student Housing Developments with Confidence
Frequently Asked Questions
Yes, depending on the nature and timing of the issues. In this case, the client’s historic 2008 financial crisis exposure was offset by a strong asset and project profile — and we sourced a lender focused on future performance, not past risk.
Yes. Student housing in Belfast has seen increasing demand due to limited modern stock and continued university growth. However, it requires lenders who understand the sector and local dynamics.
Most lenders offer 65–75% LTC. We achieved 78% LTC in this case due to the strength of the site, planning, and client delivery plan.
Typical terms range from 24 to 36 months to accommodate planning, construction, and lease-up. We secured a 30-month term with built-in flexibility.
Yes. We regularly structure funding for UK and Irish schemes, including in Belfast, Dublin, Cork, and beyond — particularly where cross-border structuring or specialist lenders are needed.