The whole return on one screen. A 420-bed student scheme turns £58.0M of cost into a £78.0M stabilised value, leaving £20.0M of profit and a 1.8x return to LP capital.
Dashboard · 03
£23.2M of LP equity completes a £58.0M capital stack
£34.8M
Senior loan
60% of total cost
£23.2M
LP equity, the raise
The capital sought here
60%
Loan to cost
Conservative for PBSA
44.6%
Loan to value
44.6% of £78.0M GDV
Capital stack · sources (£M)
The raise is £23.2M of LP equity in a single tranche. A £34.8M senior loan funds the balance at 60% loan-to-cost, a conventional forward-funded development stack.
Dashboard · 04
£78.0M value, £58.0M of cost, £20.0M of profit
£78.0M
Gross development value
£4.3M NOI at 5.5%
£58.0M
Total development cost
Land, build, finance
£20.0M
Development profit
Value less all cost
25.6%
Profit on GDV
Margin against value
Gross development value to profit (£M)
The appraisal is straightforward. A £78.0M gross development value against £58.0M of total cost leaves £20.0M of profit, or 25.6% of the value.
Dashboard · 05
Margin holds at 34.5% on cost, 25.6% on value
34.5%
Profit on cost
The standard development yardstick
25.6%
Profit on GDV
£20.0M on £78.0M of value
£20.0M
Development profit
Margin after finance
1.9x
Project equity multiple
Before pref and promote
Profit on cost across sales-price scenarios
Profit on cost lands at 34.5% and profit on value at 25.6%. At the project level the scheme returns 1.9x on invested capital before the LP waterfall.
Dashboard · 06
420 beds across cluster ensuite, ensuite and studios
420
Beds
One building, three room types
3 types
Room types
Cluster ensuite, ensuite, studio
£270/wk
Blended rent
Per bed per week
£245-£365
Rent range
Ensuite to studio
Unit mix · homes and revenue by type
The mix runs across 288 cluster ensuite beds at £245 a week, 72 large ensuites at £290 and 60 studios at £365. Blended income is about £270 a bed a week.
Dashboard · 07
£4.3M of income, ~65% pre-let on a nomination
£4.3M
Stabilised NOI
At 97% occupancy
65%
Pre-let
25-year nomination
33 mo
To stabilised
Close to first academic year
420
Beds
Nomination plus direct-let
Closings and cumulative sales by month
Stabilised net income is £4.3M. A 25-year University of Bristol nomination pre-lets about 273 beds, void-free and RPI-linked, before completion.
Dashboard · 08
£58.0M of cost, most of it construction and land
£40.0M
Construction & soft cost
Build, contingency, fees
£14.0M
Land
Harbourside plot
£5.6M
Professional & planning
Design, engineering, S106
£4.0M
Finance cost
Rolled-up interest
Development cost breakdown (£M)
The cost plan is £58.0M. Construction and soft costs are £40.0M and land £14.0M. Professional and planning fees run £5.6M, with a 5 percent contingency held on top and £4.0M of finance.
Dashboard · 09
60% of cost from senior debt, the balance in equity
£34.8M
Senior development loan
Funds 60% of total cost
£23.2M
LP equity
40 percent of the stack
60%
Loan to cost
Conservative for the sector
7.5%
Loan rate
All-in, rolled up
Senior loan balance · draw and repayment (£M)
A £34.8M senior loan funds 60% of cost at about 7.5% all-in. The remaining £23.2M is LP equity in a single tranche.
Dashboard · 10
1.8x and ~18% net to LP capital over the hold
18%
LP net IRR
After pref and promote
1.8x
LP equity multiple
Net to investors
£23.2M
LP equity
The capital at risk
8%
Preferred return
Paid before the promote
LP equity cash flow by period (£M)
LP capital of £23.2M earns an 8% preferred return, then splits profit 70/30 with the sponsor, for a ~18% net IRR and a 1.8x equity multiple. A refinance can return about £8M early.
Dashboard · 11
33 months from close to stabilised
33 mo
Total programme
Close to stabilisation
24 mo
Construction
Main build contract
4 mo
Enabling phase
Close, conditions, draws
3 mo
Lease-up
First academic-year intake
Monthly development spend by category (£M)
The programme runs 33 months. Close and enabling take the first four months, construction runs 24 months to month 28, and lease-up stabilises the building by month 33.
Dashboard · 12
A 25-year nomination and a £90M forward-sale floor
65%
Pre-let on nomination
University of Bristol
25 yr
Nomination term
RPI-linked, void-free
£90M
Forward-sale floor
At a 4.75% cap
4.75%
Exit cap
Institutional aggregator
Pre-sales reservations vs closings (%)
About 65% of beds are pre-let for 25 years on a University of Bristol nomination. Behind it, an institutional forward-sale option at a 4.75% cap sets a floor of about £90M under the exit.
Dashboard · 13
Margin absorbs a real move in rent or cost
34.5%
Base profit on cost
Room before breakeven
5%
Construction contingency
Held on hard cost
44.6%
Loan to value
Low debt cushions value
25.6%
Profit on GDV
Cover against a move
Leverage vs typical maximums (%)
The base case carries a 34.5% profit on cost. A 5 percent contingency, 44.6% loan-to-value and ~65% of income fixed on a nomination give the scheme room to hold profit through a move in rent or build cost.
Dashboard · 14
Bristol demand meets a shortage of purpose-built beds
£270/wk
Blended rent
Per bed per week
£245-£365
Rent range
Ensuite to studio
420
Beds delivered
Into a supply-short market
Harbourside
Location
Floating Harbour, walk to campus
Pricing vs the Floating Harbour comparables (£k/bed)
Bristol has one of the largest student-to-bed gaps of any major UK city. Kestrel delivers 420 managed beds on the Floating Harbour, a short walk from both universities.
