Downing Property Finance has completed loans totalling around £47.5m to fund the development of three UK purpose-built student accommodation (PBSA) assets.
The firm has agreed a £12m development loan in Glasgow for a conversion project in the city centre, which will provide beds for postgraduate students at the University of Glasgow.
In Bristol, a £25m development loan will fund delivery of a new build scheme in the city centre and in Manchester, Downing is lending £10.5m for a scheme providing 76 studio apartments through a structure which means it will fund around 95% of total costs for the deal.
Will Powell, investment director at Downing, said: “Downing remains committed to the PBSA sector, which, despite some recent slowdown, continues to perform as an asset class in the core university cities. Our focus remains on backing good quality sponsors on well-structured business plans, and I was delighted to close these transactions within April so that construction can commence in earnest.”
John Pollington, investment director at Downing, added: “We’re proud to support PBSA developers with a broad, flexible range of funding solutions, considering the client’s goals through every step of a process designed to be straightforward. We look forward to continuing to work with experienced partners to help bring high quality schemes forward.”
