Delivered by Secure Trust Bank (STB) Real Estate Finance at a 63% LTV, the Purpose-Built Student Accommodation (PBSA) scheme, has made Danehurst able to retain the asset for an initial period of one year and three months.

Consisting of 155 studio apartments, The Pepper Mill met a practical completion on time for students for the present academic year. 

A residents’ lounge, gym, library, cinema room and a games room are examples of its amenities. The scheme is the most recent instalment of the developer’s PBSA portfolio. 

The loan is the second deal made between both parties since 2021 and was spearheaded by Richard Lynn, senior relationship director, and James Reeves, relationship manager. 

Bob Bratland, director at Danehurst, said: “Returning to STB to refinance this particular asset was an easy decision. The bank has a strong reputation in the PBSA space, and we were confident in the team’s ability to see this deal through to completion. We were happy to welcome students to their spectacular, well-designed studios last year.” 

Edinburgh’s City Plan 2030 brought in firmer guidelines for PBSA schemes, including a cap limiting studio apartments to 10% of the unit mix, overall. The policy was effective from November 2024, which was months after construction started on The Pepper Mill. The development is one of the final ones in the city to be carried out under the previous guidelines. 

Lynn said: “Edinburgh is one of several cities across the UK where demand for student accommodation significantly outweighs supply. The Pepper Mill is a standout development, and we’re pleased to be supporting Danehurst again in providing much-needed student accommodation in such an incredible city.” 

Research from Student Crowd carried out during March this year, found that Edinburgh currently has 23,109 PBSA beds, while the forecast demand is 41,325.1. 

Reeves said: “Managing this deal alongside Richard was an extremely valuable experience. Edinburgh is a city close to my heart, seeing the transformation brought about by Danehurst was a privilege to be a part of. The Pepper Mill provides a standard of accommodation that will certainly add to the experience of students coming to the city …”