£13.5m bridging finance facility supports Kirkstall Brewery campus repositioning in Leeds

"This was a scheme where the key consideration was how the asset would be managed over time, not just its position today,"
- Alexia Evans - HTB

Hampshire Trust Bank (HTB) has provided a £13.5m bridging finance facility to support the repositioning of the Kirkstall Brewery campus in Leeds, refinancing existing debt and partially repaying a previous lender.

The 18-month facility is secured against a 664-bed former student village in Kirkstall. The site comprises a 442-bed parcel with full planning consent for conversion into 151 Class C3 apartments, alongside 202 retained purpose-built student accommodation (PBSA) beds, creating a scheme with potential end uses across both the private rented sector (PRS) and student accommodation markets.

The structure is designed to allow asset management and stabilisation while preserving flexibility across a range of exit routes. Those include disposal or refinance of the PRS element, sale or long-term leasing of the PBSA accommodation, or a whole-site disposal. No development is planned during the loan term, with refurbishment of the PBSA element funded by borrower equity.

The transaction builds on progress already made at the site, including the disposal of an eastern parcel to an institutional investor and a long-term lease agreed with Leeds City Council across part of the retained accommodation. 

That lease is expected to deliver approximately £2.5m per annum of savings to the council over its term. Planning consent for the PRS conversion was granted by Leeds City Council in November 2025, providing a clear basis for the next phase.

The deal was introduced by Johnny Grassick, associate director at GLPG, and led by Alexia Evans, lending director at Hampshire Trust Bank, supported by Olivia Emmett.

"This was a scheme where the key consideration was how the asset would be managed over time, not just its position today," said Evans (pictured). "With planning in place and clear progress already made, the focus was on structuring a facility that allows that to continue without forcing an early decision, while remaining aligned to how the site will be worked through in practice."

Grassick echoed that view. "There wasn't a single, defined exit here, but that reflects the strength of the site," he said. "With planning in place, a number of viable routes forward and progress already achieved on parts of the scheme, including the lease to Leeds City Council, the key was putting a structure in place that didn't restrict those options too early. This gives the borrower the flexibility to build on that momentum and take the right route as the scheme evolves."

Neil Leitch, managing director, development finance at Hampshire Trust Bank, said the deal reflected a broader shift in the market. 

"This type of transaction is becoming more common where the focus is on repositioning existing assets rather than moving straight into development," he said.

"Where planning is already in place, the emphasis shifts to how the scheme is managed, how income is stabilised and how the exit is delivered over time. That requires a structure which gives the borrower the flexibility to work through those stages properly, rather than forcing a single outcome too early."