Real estate debt advisory Karis Capital closed 2025 with a £40.1 million restructuring that will support the conversion of a residential block in south London into purpose-built student accommodation.
The transaction relates to a permitted development site that will deliver 219 student apartments. Karis Capital first supported the project in 2022, when its chief executive and co-founder, Nicholas Christofi, helped the developer secure initial financing to refinance the asset. Funding followed at the start of 2025 to enable the conversion works, before the latest restructuring increased the total facility to £40.1 million by the end of the year.
The additional capital also underpins the developer’s wider ambitions. Alongside this scheme, the client is progressing a pipeline targeting 3,000 student homes over the next five years, with the south London project forming a key part of that growth plan.
The deal involved InterBay Commercial, which provided the funding through a structure designed to support the asset across multiple stages of development and stabilisation. According to the parties, the approach allowed the project to move from refinancing through to long-term debt without disruption.
“It has been a real privilege to work with both InterBay Commercial and our long-term PBSA developer client on what we call ‘lifecycle lending’ for such an impactful project, which meets the ever-growing demand for premium student accommodation in the UK’s Capital,” said Nicholas Christofi, chief executive and co-founder of Karis Capital (pictured).
“Not only has the process of structuring this deal been truly rewarding in terms of seeing such a significant PBSA development finally come to fruition, but the scale of this facility has also surfaced as one of the largest deals that Karis Capital has brokered in 2025."
He added, "We look forward to moving from strength to strength once again in 2026 and taking on even greater deals that showcase our ability to source the best finance possible for prominent developers and investors all across the industry.”
From the lender’s perspective, the focus was on continuity and flexibility. InterBay structured the facility to accommodate the transition from conversion finance to longer-term funding, while remaining aligned with the developer’s expansion plans.
“We’re delighted to have supported this significant PBSA development through a tailored loan structure that enabled the project to progress seamlessly from refinancing the conversion and now into long-term debt,” said Marc Callaghan, head of commercial lending at InterBay.
“Working with Karis Capital has been an exceptional experience—their expertise and collaborative approach ensured that every stage of the process was efficient and aligned with the client’s ambitious growth plans. We greatly value our partnership and look forward to delivering more innovative funding solutions together.”
