DEVELOPMENT finance lender Atelier has announced completion of a £35.5 million loan to MCR Property Group to facilitate the permitted transformation of a former office building into a purpose-built student accommodation (PBSA) scheme in Glasgow.
Structured over a 16-month term, the development facility will fund the delivery of 288 student rooms. Comprised of 163 studios and 125 cluster rooms, the facility will also include a cinema, gym and shared spaces for studying and socialising.
Once completed, the scheme will be managed by Flow Student, MCR’s PBSA operator.
Matthew-Blaine Young, head of origination at Atelier, said, “MCR has ambitious plans to grow its student accommodation portfolio and build the Flow Student brand. As their lending partner, our focus is on structuring the finance they need to deliver those plans. This is a strong opportunity to convert an existing office building into 288 student beds within walking distance of several campuses, in a city where demand for student accommodation outstrips supply. We’re delighted to be working with MCR again to bring the scheme forward.”
David Tracey, COO at MCR Property Group, added, “The Atelier team has a deep commercial understanding of the PBSA sector. We saw that first-hand on our Canterbury scheme and are delighted to be working with them again in Glasgow. The team understood the practical demands of converting an office building into a 288-bed student accommodation scheme and structured the facility around our programme to deliver it in time for the 27/28 academic year.”
