Paragon Bank provides £8m funding package for Loughborough PBSA scheme
Added by Love Business East Midlands | 4 July 2025
Paragon Bank has provided an £8 million funding package to experienced SME developer Six Degrees, part of 9 Property Group, to support the refinance and development of a 100-bed purpose-built student accommodation (PBSA) scheme in Loughborough.
The facility, which went live in April 2025, has helped refinance the existing site and is supporting the development of a new, high-spec PBSA complex located in the heart of Loughborough town centre. Now three months into construction, the scheme is on track to welcome its first intake of students in September 2026.
The accommodation will comprise of 100 en-suite bedrooms arranged across 22 cluster flats, providing high-quality, modern living spaces tailored to the needs of today’s students. The completed scheme is expected to deliver a Gross Development Value (GDV) of £12.2 million.
Six Degrees is a well-established developer with a proven record of delivering premium student accommodation across the Midlands, including in Derby, Nottingham and Loughborough. This marks the company’s first transaction with Paragon Bank, led by Paragon Relationship Director Karl Kent, with support from Portfolio Manager Shannon Altimas.
The scheme will serve Loughborough University’s large and growing student population, which exceeds 19,000. With the town ranked as one of the UK’s top university locations, demand for well-located and well-managed PBSA remains strong, driven by both domestic and international students seeking high-quality, en-suite accommodation close to campus and local amenities.
Taj Ubhi, Founder and CEO of 9 Property Group which owns Six Degrees, said:
“We’re excited to be bringing forward another PBSA development in a location we know well. Paragon’s understanding of the sector and agile approach to funding has made them an ideal partner, and we’re looking forward to delivering this scheme ahead of the 2025 academic year.”
Karl Kent, Relationship Director at Paragon Bank, said:
“We’re proud to support Six Degrees with this high-quality PBSA scheme in a town where demand for student accommodation continues to grow. Taj and the team have a strong track record in delivering similar projects and we’re confident this development will be a welcome addition to Loughborough’s student housing offering. It’s been a pleasure to work with Six Degrees on their first deal with Paragon and we look forward to supporting them on future projects.”
Paragon offers tailored lending solutions for PBSA schemes across the UK, providing first charge funding of up to 65% of net investment value, with loan terms of up to 36 months and facilities of up to £35 million. The bank also provides stabilisation loans, post practical completion, for a further 18 months. The bank works closely with SME developers to support the delivery of high-quality accommodation in areas of strong student demand.
To find out more about Paragon Bank’s Development Finance offering, visit www.paragonbank.co.uk/development-finance.
