"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"
- Will Powell - Downing
Downing Property Finance has completed three PBSA development finance deals totalling around £47.5m, spanning Glasgow, Bristol, and Manchester, as the lender pushes for further growth in the student accommodation sector.
The Glasgow transaction is a £12m development loan for a city centre conversion that will provide beds for postgraduate students at the University of Glasgow. The deal also positions Downing among a small number of lenders able to operate on the same terms in Scotland as in England.
In Bristol, Downing has agreed a £25m development loan for a new city centre scheme. The funding was structured to help the developer navigate the Gateway 2 approval pathway required under the Building Safety Act, reflecting the additional complexity now involved in delivering larger residential projects.
The Manchester deal sees Downing lend £10.5m through a structure that covers around 95% of total development costs. The scheme will deliver 76 studio apartments, with completion timed for the September 2027 university intake and an expected gross development value of approximately £20m.
"Downing remains committed to the PBSA sector, which, despite some recent slowdown, continues to perform as an asset class in the core university cities," said Will Powell, investment director at Downing (pictured left).
"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, also an investment director at Downing (pictured right), 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."
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