Another PBSA deal? Don't mind if we do.
We've helped student accommodation developer Danehurst to refinance The Pepper Mill, a thriving asset in Bonnington, Edinburgh, with an £18m loan.
The PBSA investment facility, delivered at a 63% LTV, will allow Danehurst to hold on to the property for a further 15 months.
Made up of 155 studio apartments, The Pepper Mill reached practical completion in time to welcome students ahead of the 2025/26 academic year. And trust us, it couldn't be more different than the stereotypical student living spaces from previous decades.
Amenities include a residents' lounge, a gym, a cinema room and even a games room. The famous Edinburgh Castle, meanwhile, can be seen from studios on the upper floors. Talk about living the high life!
It's the most recent addition to the developer's PBSA collection, with others located in Glasgow and previously Egham, Surrey.
This also marks the second deal we've completed with Danehurst in the past five years. It was headed up by senior relationship director Richard Lynn and relationship manager James Reeves.
Bob Bratland, director at Danehurst, said: "Returning to STB to refinance this particular asset was an easy decision. The bank has a strong reputation in the PBSA space, and we were confident in the team's ability to see this deal through to completion. We were happy to welcome students to their spectacular, well-designed studios last year."
Edinburgh's City Plan 2030, which came into force in November 2024, introduced tighter PBSA rules, including a cap that limits studio apartments to 10% of the overall unit mix. With construction already underway before the policy landed, The Pepper Mill is one of the final schemes delivered under the previous guidelines.
Richard said: "Edinburgh is one of several cities across the UK where demand for student accommodation significantly outweighs supply. The Pepper Mill is a standout development, and we're pleased to be supporting Danehurst again in providing much-needed student accommodation in such an incredible city."
James said: "Managing this deal alongside Richard was an extremely valuable experience. Edinburgh is a city close to my heart, seeing the transformation brought about by Danehurst was a privilege to be a part of. The Pepper Mill provides a standard of accommodation that will certainly add to the experience of students coming to the city, and I'm delighted to have helped bring this project forward."
A first-class result all round.
Visit our dedicated student accommodation investment area.