The loan was financed by peer-to-peer lender Assetz Capital, along with funding from the company’s existing balance sheet.
The new £14m development, which is set to complete in September 2018, will transform the former Archer House site which comprised a six-storey multi-let office space. The funding from Assetz will enable the company to refurbish the existing site and transform it into a 177 bed student accommodation.
Assetz Capital launched in 2013 as an alternative finance provider and offers development finance, SME loans, commercial mortgages, bridging finance and renewable energy loans.
9PG and chief executive Taj Ubhi currently own nearly £40m worth of properties. The company employs seven full time staff and has a team of nine contractors that work on site developments and refurbishments. 9PG is eyeing a number of other projects in the Nottingham area, as well as other student accommodation projects in the Midlands, Yorkshire and the North East.
Taj Ubhi, chief executive at 9PG, said: “I have been working in the property market for a number of years and have naturally progressed into developing student accommodation. The latest site in Nottingham will provide students with easy access to both universities as well as the bars, restaurants and other leisure facilities within the city centre.
“I first partnered with Assetz a few years ago on a development worth £1.5m, which was the largest peer-to-peer deal in the country at the time. They were introduced through a broker and I’ve worked with them on several projects since.
“With peer-to-peer, most people automatically think it’s expensive, but it’s an excellent form of alternative finance that helps to get the deal over the line and take your business to the next step. My experience of dealing with the high street banks has been a bit trickier and you don’t get to deal with people in leadership roles.
“The team at Assetz are a fantastic bunch. They’re professional and keen to lend money to the right people for the right projects. I speak to Neil Roper on a regular basis and he also acts as a sounding board for the financial aspect of my business, which adds tremendous value.”
Neil Roper, Regional Relationship Director at Assetz Capital, said: “We have been impressed by the drive and the entrepreneurial spirit of Taj and the rest of the team at 9PG. They have very quickly developed a number of significant projects across the East Midlands and are now reaping the rewards by letting out quality spaces.”