United Trust Bank provides development bridge for £74m GDV McLaren PBSA scheme
United Trust Bank (UTB) Property Development Finance has provided a £5m development bridge to support leading Living sector developer McLaren Property with plans to deliver a substantial new £74m student accommodation (PBSA) scheme within the University of Leeds campus.
The 12-month facility, introduced by Alex Maxwell-Scott, Co-Founder and Partner of Ardant Partners, has enabled Mclaren Property to refinance its existing acquisition loan and release additional equity whilst it progresses plans for the redevelopment of Springfield House which sits on the main university campus adjacent to the Leeds General Infirmary.
Deal highlights
- £5m development bridge
- £8m current value with potential £74m GDV
- 63% LTV
- 12-month term
A leading UK PBSA and Living sector developer, McLaren Property, McLaren Living and McLaren Regeneration have a combined pipeline of £4.6bn across 36 sites and a total of 12,000 homes.
McLaren Property acquired the Grade II listed former office and medical facility in 2023 and subsequently secured planning consent for a scheme comprising 334 student beds. As part of its ongoing development strategy, McLaren is exploring potential enhancements to the consented scheme to optimise the building’s layout, improve the student offer and maximise the long-term value of the development. On completion, the scheme is expected to deliver a GDV in the region of £74m.
UTB’s £5m development bridge, structured by Daniel Carlisle, senior director – Property Development at United Trust Bank, represents 63% LTV of the site’s current £8m value and gives Mclaren additional time to progress those proposals whilst considering the next stage of the project, including securing a forward-funding partner or development finance to take the scheme through construction.
James McMillan, finance director at McLaren Property, said: “This exciting scheme has enormous potential and will deliver much needed high-quality student accommodation to the area. With the original planning consent in place, we wanted additional time to look carefully at how we could further optimise the scheme before moving into the development phase. The facility from United Trust Bank gives us the flexibility to progress those plans and consider the most appropriate funding route for the next stage.”
Alex Maxwell-Scott, co-founder and partner at Ardant Partners, said: “The key requirement here was finding a lender which understood both the current position and the considerable potential of the site. UTB quickly grasped what the client was looking to achieve and structured a suitable facility. Daniel and the UTB team took a pragmatic and commercial approach throughout and worked closely with us to get the refinance completed smoothly.”
Daniel Carlisle comented: “This is a great example of where a development bridge can give an experienced developer the time and flexibility they need to maximise the potential of a site rather than rushing into the next stage of a project. Our facility gives them the breathing space to finesse those plans and determine the best route forward.
“It’s also exactly the sort of transaction our new Real Estate Finance division was created to support. The breadth of our expertise allows us to look at what a customer is ultimately trying to achieve and provide appropriate funding across different stages of the project lifecycle.”