Investec Real Estate has provided modular development specialist Stelling Properties Group with an £11.85m loan to finance the construction of a modular purpose-built student accommodation (PBSA) scheme in Southampton.
The 122-studio scheme, which is being built on a former Bank of England site in the city centre, is due to complete in time for the 2024/25 academic year.
The scheme will be operated by Unilife and the on-site amenity provision includes a restaurant and bar on the ground floor.
Ian Burdett, from Investec Real Estate, said: “Our latest Future Living report highlighted the strong prospects for the UK student accommodation sector and this transaction builds on our market leading track record in this space, in what is a critically undersupplied market. Working with repeat borrowers has been key to our loan book resilience, and Stelling’s innovative utilisation of modular construction methods ensures they deliver high quality schemes in an efficient and sustainable manner.”
Jose Ignacio Alvarez, from Stelling Properties, added: “We are thrilled to be partnering with Investec once again, following the success of Riverside House in Guilford. This project will not only provide much needed quality purpose-built student accommodation in the area but utilising modular construction it will also bring an historic building back to its original glory and help to revive a busy city centre high street.”
