Heritage hospital site to become 233-bed student village with £19.25m development funding

"This transaction demonstrates our ability to support new clients with flexible, development-focused funding solutions, even where delivery timelines are compressed"
- Alice Harman of Investec Real Estate

Investec Bank has provided Barwood with a £19.25m senior development loan to finance the development and stabilisation of a 233-bed purpose-built student accommodation (PBSA) scheme in Edgbaston, Birmingham.

The 36-month facility supports Barwood, a new-to-bank client for Investec, in delivering a village-style student campus on the former St Chad's Hospital site, originally constructed in 1808. The scheme will retain and refurbish two Grade II listed buildings alongside the construction of three new buildings, creating a high-quality PBSA offering in one of the UK's leading university cities.

Birmingham's credentials as a Russell Group city with three major universities and a large, growing student population provide strong demand fundamentals for the scheme, which is targeting completion ahead of the 2026/27 academic year.

The loan has been structured to provide flexibility around an accelerated construction and delivery programme, supporting Barwood through the development phase and into stabilisation. The transaction reflects Investec's experience in funding complex assets, including schemes involving listed buildings, and its capacity to tailor financing structures to specific client requirements.

"This transaction demonstrates our ability to support new clients with flexible, development-focused funding solutions, even where delivery timelines are compressed," said Alice Harman of Investec Real Estate.

"By structuring a bespoke facility, we have helped Barwood progress a complex PBSA scheme that combines heritage refurbishment with new-build development, delivering much-needed student accommodation in a highly sought-after location. It has been a pleasure to work with the Barwood team on this facility."

Ed Henson, director and head of transactions at Barwood, welcomed the deal. "We are delighted to have worked with Investec Real Estate on this exciting project," he said.

"The Investec team took a refreshingly commercial outlook on the intricacies of this deal, which involved a complex development programme, including elements of new build and conversion, within a corporate structure that included external Funding Partners and Development Managers."

Known as St Chads Student Village, the completed scheme is designed to deliver a strong sense of community and inclusivity among residents, while helping to address growing demand for modern purpose-built student accommodation in the city.

The transaction adds to Investec's established track record in the UK PBSA sector, where it has provided around £1.2bn of funding since 2011. Recent deals include a £47m refinancing for YourTRIBE's PBSA scheme in Elephant & Castle, London, and a £26m development loan to Moorfield Group for a 204-bed scheme in Bristol.