Assetz Capital has originated its largest ever funding package, a £13.26m development facility to experienced student accommodation developers in the East Midlands.
The loan will be used to transform a two-storey former retail store, located in the heart of Northampton town centre and which has been vacant for some time, into 201 student apartments.
The new property, which will be built from the ground up following demolition of the existing building, will contain a lower ground retail space, and will provide students with study pods, a gym and laundry facilities.
A recent report by Knight Frank on student accommodation in Northampton concluded that there was an under supply of purpose-built student lodgings, so the new building will provide extra accommodation services as well as regenerating the area.
Assetz Capital have completed numerous accommodation projects across student hotspots around the east midlands and beyond – Nottingham, Leicester, Sheffield, and Manchester, as the lender takes a pragmatic approach to supporting developers and housebuilders who are looking to address the lack of supply in important sub-sectors of property funding such as student living and healthcare.
Andrew Fraser, chief commercial officer for Assetz Capital, said: ‘We continue to support development of PBSA, BTR and traditional large scale development. With PBSA alone Assetz Capital has provided over £48.9m funding the construction of over 790 beds across the UK. We are delighted to have supported the customer on their growth journey.”
Neil Roper, regional director for UK Midlands, added: “This is the second scheme we have supported the connection with, having completed a similar facility in Leicester city centre in 2021. The vision and spirit of the company to take a vacant property and assist the town by creating vital accommodation for its students is exactly the sort of proposal we exist to fund. I can’t wait to see the finished property full of happy students.”