Quantum Development Finance (Quantum) has provided £30m in PBSA funding to Asset Capital to develop Melbury Court, a 232-bed purpose-built student accommodation (PBSA) scheme in Durham with a £46m gross development value (GDV).
Caddick Construction will deliver the scheme, which is due to complete in summer 2027. It will house students at the University of Durham.
Planning restrictions, including a city-wide Article 4 direction, constrain student bed supply in Durham, and few new PBSA beds are in the pipeline. Student acceptances at the university also rose 22% for the 2026/27 academic year.
The PBSA funding is Quantum’s second loan to Asset Capital in two years. The developer’s first Quantum loan, £11m for a 34-unit mixed-use scheme in Harrogate, completed in 2025.
The PBSA funding follows Quantum’s announcement of a £500m facility from Goldman Sachs, which takes the bank’s total funding capacity across Quantum projects to almost £700m. The facility supports Quantum’s move into operational real estate, as it widens its lending to cover every stage of a scheme’s lifecycle.
It also lets the lender back more schemes across living sectors including PBSA, build-to-rent and other operational asset classes, while it continues to focus on SME housebuilding.
“We are delighted to support another project for Asset Capital,” said Sam Hudson, head of portfolio management at Quantum. “Dan and his team’s deep knowledge of the PBSA market continues to be proven invaluable as they have obtained an excellent planning consent and executed a coordinated delivery strategy. We look forward to supporting them on this scheme to get essential new student accommodation in place before the start of the next academic year.”
“Melbury Court will be built to achieve a BREEAM Excellent rating and will provide top quality accommodation and amenities for the University of Durham’s students for many years to come,” added Dan Newett, director of Asset Capital.
“Quantum has proven once again to be an ideal funding partner. Durham is not an easy place to get new housing approved and built, but Quantum got to grips quickly not only with our project but the dynamics in which we’re operating and structured a flexible facility that allows us to get work started on time so that we can deliver before next year’s new student intake arrives.”
Melbury Court is a five-storey scheme on the northern edge of Durham, a five-minute walk from the University Hospital and 10 minutes by bus from the university campus. It will house 232 students each academic year in private living spaces, with study rooms, a gym, a games area, a cinema and a private dining area.
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