Specialist lender, CapitalRise, has just lately closed two vital transactions within the South West, funding pupil lodging initiatives in Bristol and Bathtub with a mixed mortgage worth of £12.5 million. These offers replicate CapitalRise’s skill to help skilled builders with compelling initiatives in robust areas. Additionally they mark CapitalRise’s first enterprise into the purpose-built pupil lodging (PBSA) sector – an thrilling new asset class for the lender.
Each loans have been originated by Lee Francis, Head of Origination at CapitalRise (above) and have been launched by Daniel O’Neil, Govt Director at SPF Non-public Purchasers (under), a long-standing companion of CapitalRise.
The primary transaction accomplished was a bridging mortgage in Clifton, Bristol that was structured to refinance current debt and supply a interval of stabilisation. This mortgage will permit the borrower to finish lettings and create a constant circulation of rental earnings on the PBSA scheme. The property advantages from glorious connectivity to each the College of Bristol and town centre.
The second mortgage additionally helps a PBSA scheme – this time in Bathtub, positioned on the well-connected Decrease Bristol Highway. Planning permission has been granted for the conversion of an current workplace constructing into pupil lodging, together with a mixture of cluster flats, studio models, and communal amenity house. The borrower intends to ship 35 pupil bedrooms and three studio flats.
The borrower behind each of those initiatives, Rengen Developments, is a extremely respected developer with in depth expertise within the PBSA sector. Rengen was based by Iestyn Lewis following a profitable profession in skilled rugby. Since 2006, the agency has been shopping for, constructing and working PBSA property, principally in Bristol and Bathtub – but additionally in different outstanding cities and cities comparable to Bournemouth, Newcastle and London. They at the moment personal round 50 buildings with 3,000 beds below administration – along with PRS, co-living and business property.
With each Bathtub and Bristol universities ranked among the many UK’s prime establishments, these initiatives are well-positioned to satisfy robust demand for high-quality pupil housing within the cities.
Lee Francis, Head of Origination at CapitalRise, commented:
“I’ve been constructing a powerful relationship with the staff at Rengen over the previous two years, and these transactions replicate our dedication to relationship-led lending. Each initiatives are in prime college areas and align completely with our technique of supporting skilled builders with best-in-class initiatives.”
Whereas residential developments in Prime Central London and the Dwelling Counties stay core areas of specialism for CapitalRise, we’re excited to increase into new areas and asset lessons the place we see robust fundamentals.”
Daniel O’Neil, Industrial Finance Adviser at SPF Non-public Purchasers, added:
“Working with a specialist lender like CapitalRise is at all times a pleasure. Their deep understanding of property and talent to reply commercially and flexibly make them a super companion for complicated transactions. At SPF, we delight ourselves on delivering tailor-made finance options for our shoppers, and CapitalRise’s strategy aligns completely with that ethos. We look ahead to persevering with our collaboration.”
Iestyn Lewis, Founding father of Rengen Developments, commented:
“CapitalRise and SPF have been unbelievable companions all through this course of. Their skill to grasp the nuances of PBSA and reply flexibly gave us confidence from day one. These initiatives are an vital a part of our development technique, and having lenders who share our imaginative and prescient and ship on their guarantees makes all of the distinction.”
These transactions spotlight CapitalRise’s skill to diversify into new sectors whereas remaining targeted on high-quality initiatives and skilled debtors. With a mean LTV of slightly below 70%, the loans replicate the lender’s urge for food for well-structured alternatives with skilled debtors in robust areas.
This story was additionally lined in Growth Finance As we speak, December 2025.
