Arc & Co. and Hampshire Trust Bank (HTB) have completed a £21.5 million development facility to support the delivery of a 210-bed purpose-built student accommodation (PBSA) scheme in central Nottingham.
The sponsor, an experienced developer, appointed Arc & Co. to structure and arrange the £21.5m facility, with HTB providing the development funding.
Construction has commenced and the scheme is targeting completion ahead of the 2027 student intake.
Nottingham, home to both the University of Nottingham and Nottingham Trent University, is a key regional student market where demand continues to outstrip supply.
The development will deliver 210 new bed spaces in a high-quality scheme designed to meet the needs of a growing student population.
Philip Kay, Director at Arc & Co, said:
“PBSA remains a highly active sector for Arc & Co., and we were very pleased to support the sponsor on this important Nottingham scheme.
“Our role was to structure and arrange a funding solution that aligned with the developer’s requirements, and HTB proved to be an excellent partner throughout the process. Their ability to navigate the complexities of a transaction of this scale and deliver with certainty made them the right lender for this project.”
Andrew Dignum, Lending Director at HTB, said:
“This was a significant opportunity to support a new to bank client on a complex PBSA scheme.
“The £21.5m facility underlines HTB’s capability in structuring and funding large student accommodation developments in key regional markets, and it has been a pleasure to work in partnership with Arc & Co. to deliver this transaction. We look forward to seeing the scheme progress and to building on this new relationship.”
Neil Leitch, Managing Director of Development Finance at HTB, added:
“Student accommodation remains one of the most resilient sectors in regional property markets, with Nottingham a prime example of a location where demand continues to exceed supply. Transactions of this scale and complexity require specialist sector knowledge and certainty of funding.
“At HTB we are building a strong PBSA track record, and this facility reinforces our role as a trusted partner for complex regional development.”
So far in 2025, Arc & Co. has completed a series of £20m+ funding transactions, including a £26m bridging loan for a Prime London residential property; a 111-bed PBSA scheme in London with a £36m GDV; and a £59m loan secured against a hotel portfolio.
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