Development lender Avamore Capital has expanded into the student accommodation sector.
Avamore, which has lent more than £600m across its four core products – development, refurbishment, part complete development and bridging – since its formation eight years ago, has historically focused on UK residential property.
Philip Gould, Avamore’s chief lending officer, said: “Going forward, the forecast slowdown in planning and delivery of new beds, combined with rising student numbers, means the broad macro trend is favourable for developers and investors. The issues around affordability make it clear there is a growing requirement for small-scale, low amenity student housing targeted at domestic and price-sensitive international students.
“We have determined that this requirement can be serviced by the refurbishment of existing first generation PBSA stock and the repurposing and retrofitting of existing office/commercial stock, which fits extremely well with Avamore’s extensive experience in heavy residential refurbishments and office-to-resi PD conversions.
“We look forward to increasing our presence in the student accommodation sector and have ambitious plans to further improve how we can help developers through continued product innovation to give our brokers and borrowers the support they need.”
