Atelier provides Rengen with fourth PBSA loan this year

Atelier has provided Rengen with £30m of loans to establish purpose-built student accommodation (PBSA) schemes in key university cities.

Pictured left to right: Daniel O Neil, Martin Gilsenan and Lestyn Lewis | PBSA News
Pictured left to right: Daniel O Neil, Martin Gilsenan and Lestyn Lewis.

The development lender Atelier has provided finance to specialist regeneration developer Rengen for four new schemes.

Since February, Atelier has provided four separate loans this year, ranging from £2.7m to £7.3m to Rengen for a series of PBSA regeneration schemes with a Gross Development Value totalling £30.1m.

“Working with Atelier gives me the agility and certainty I need to secure the best development opportunities. Atelier’s team understand my financial requirements and what it takes to succeed in the fast-growing but competitive student accommodation space – and our relationship feels like a genuine partnership.

“Atelier’s fixed interest rates are highly competitive, but their real value – and the reason I keep choosing to work with them – is the certainty they provide on every deal.

‘Rengen’s reputation is built on our ability to deliver consistently high-quality accommodation, and this is underpinned by the combination of our in-house expertise and certainty over our finance. Atelier’s support gives us a decisive edge.”

Iestyn Lewis, CEO, Rengen

The developer’s latest project is the redevelopment of a student accommodation building in central Bristol.

Atelier has provided a £6.75m loan facility at 65% LTV to enable Rengen to acquire and completely refurbish the building.

“Iestyn and his team at Rengen have been successfully delivering student accommodation schemes since 2010, and their reputation is now second to none. This enables them to secure the best sites, even in university cities such as Bristol where demand and competition are highest. We’re delighted to have forged an enduring relationship with Rengen and to be helping them deliver comfortable, regenerated accommodation for the next generation of students.”

Martin Gilsenan, Chief Originations Officer, Atelier

Split into flats and located in the University of Bristol’s East Residential Village, the PBSA scheme is home to nearly 4,000 students.

Atelier’s finance has proved central to Rengen’s success and integral to the developer’s ability to secure the best sites in university cities like Bristol and Bath where demand for PBSA is high.

“I’ve worked with Rengen and Atelier on the last five student accommodation schemes they’ve delivered together, and it’s striking what a meeting of minds there is between them.

“Atelier has an intuitive understanding of how to structure finance that accommodates – and anticipates – the needs of agile developers like Rengen. They’re quick to provide credit-backed terms and they always follow through with fast and certain execution. It’s proving a highly successful partnership and we’re already working on a pipeline of future developments together.”

Daniel O’Neil, Director of Real Estate Debt Advisory, SPF Private Clients

The partnership between the two companies came to fruition in 2021.