Glenhawk completes £11.7m loan to support PBSA refinance in Aberdeen

The borrower sought to refinance their existing development finance facility on a high-quality PBSA asset, securing a new structure that provides the time and flexibility required to implement their business plan. This includes embedding a new managing agent, driving occupancy levels, and increasing rental income across the scheme.

A flexible approach to a specialist asset class

This transaction required a detailed understanding of the PBSA sector and a funding structure aligned to operational realities.

While the scheme is temporarily under-occupied, this is through no fault of the borrower. With a clear and credible strategy in place to achieve full occupancy, the priority was structuring a facility that provided breathing space during the stabilisation period.

We structured the £11.7 million loan over a two-year term, incorporating a bespoke interest profile designed to align with anticipated letting uplifts. This tailored approach ensures the funding supports the asset’s performance trajectory, rather than constraining it.

Structured solutions for complex cases

Commenting on the transaction, Chris Daly, Managing Director, Structured Real Estate at Glenhawk, said:

“This was a complex refinance requiring both sector expertise and a pragmatic mindset. PBSA assets come with specific operational and income dynamics, and it was important to deliver a structure that recognised those nuances.

The borrower needed a lender capable of understanding the full context, not just the numbers today, but the strategy for tomorrow, and structuring funding accordingly. By taking the time to assess the asset, the business plan, and the path to stabilisation, we were able to provide a facility that positions the borrower for long-term success.

Transactions like this demonstrate the value of working with a lender that is comfortable with complexity and able to deliver genuinely bespoke solutions.”