Danehurst's £18m refinancing deal has secured the future of its purpose-built student accommodation (PBSA) scheme, The Pepper Mill, in Bonnington, Edinburgh. The development, which reached practical completion last year, offers a welcome addition to a city struggling with a severe shortage of student beds.
Edinburgh's student housing market is facing an acute crisis, with 18,216 places needed to meet demand but only 23,109 available, according to research by Student Crowd in March. The city's universities are under pressure to provide accommodation for their students, but new planning regulations introduced last year are restricting the development of studio apartments – a key type of accommodation.
The City Plan 2030, which came into effect in November, imposes strict limits on the proportion of studio apartments that can be built in new PBSA developments. While The Pepper Mill was exempt from these rules as it began construction before they were introduced, the policy shift reflects broader regulatory changes across Scotland's property market.
Bob Bratland, director at Danehurst, praised Secure Trust Bank for its support: "We're delighted to be working with STB again. Their expertise in the PBSA sector is unparalleled, and we have every confidence that they will continue to support us through this challenging period." The refinancing deal marks the second collaboration between the two companies since 2021, led by Richard Lynn and James Reeves.
Richard Lynn from Secure Trust Bank acknowledged the market conditions driving their involvement: "Edinburgh is one of several cities where demand for student accommodation far outstrips supply. We're pleased to be supporting Danehurst once again in providing much-needed accommodation for students." The 15-month refinancing term suggests that Danehurst may be considering its options for the asset, but no specific plans have been disclosed.