The finance package has been put together to develop Six Degrees, a brand new 46-room, purpose-built, apartment block for students in Nottingham city centre. The scheme, by local man Taj Ubhi is set to be finished by September 2013.
Nic Rotton of Sterling Capital Reserve, said: “Taj’s story is a familiar one; he is a successful local developer who had found a site and obtained planning permission. He had tried all the usual bank sources with no luck.
Taj Ubhi says: “I’m delighted that the deal has gone through so quickly. I’ve known Nic for some years, and Sterling was the obvious phone call to make for me as they’ve delivered in the past. Developers are increasingly turning to brokers such as Sterling to raise finance. My advice to others in the same situation is to give Sterling a call – you have nothing to lose and they really do take a personal interest in your scheme. Nic and his team have gone beyond the call of duty to make this deal happen, and I couldn’t be happier with the way it’s gone.”
Taj adds: “Traditional student accommodation has hundreds of rooms crammed in, which we feel de-personalises living and space becomes overcrowded. We've specifically targeted a lower number of beds in a prime location to give the security, design and comfort of a new build with the personal experience of living in a smaller building.”
This type of deal is typical for developers who are struggling to find finance, says Nic: “We see schemes like this regularly where quality borrowers with good schemes simply can't raise finance from the more mainstream traditional banking sources. With our funds coming from specialist funders, we are happy to assist and make deals work for everyone.”
Sterling also operates a mezzanine finance company Strata Finance – a 'dating agency' for borrowers and lenders within the commercial property market. It is also the regional sponsor for ThinCats.com, a peer-to-peer lending site which unites investors and borrowers.
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