Arc & Co. and Hampshire Trust Bank (HTB) have closed a £21.5 million development facility to finance a new 210-bed student housing scheme in the centre of Nottingham.

The funding package, arranged by Arc & Co. and provided by HTB, will support the construction of purpose-built student accommodation designed to meet growing demand in the city, which hosts both the University of Nottingham and Nottingham Trent University.

Works have already begun, with completion targeted ahead of the 2027 student intake.

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.”

Andrew Dignum, lending director at HTB, described the deal as “a significant opportunity to support a new to bank client on a complex PBSA scheme”, adding that the £21.5 million facility “underlines HTB’s capability in structuring and funding large student accommodation developments in key regional markets”.

Neil Leitch, managing director of development finance at HTB, said student accommodation remained one of the most resilient parts of the regional property market. “Transactions of this scale and complexity require specialist sector knowledge and certainty of funding,” he said.

“At HTB we are building a strong PBSA track record, and this facility reinforces our role as a trusted partner for complex regional development.”

The Nottingham scheme adds to a run of sizeable deals arranged by Arc & Co. this year. These include a £26 million bridging loan for a prime London residential property, a £36 million gross development value transaction for a 111-bed PBSA scheme in the capital, and a £59 million loan secured against a hotel portfolio.