Investec has provided Moorfield Group with a £26 million senior debt facility to support the development of a 204-bed purpose-built student accommodation (PBSA) scheme in Bristol.

The scheme, on Freestone Road in the Temple Meads Quarter regeneration area, will include a mix of studios and cluster rooms alongside amenities such as a gym, communal lounge, games area, study spaces, laundry facilities and landscaped courtyards.

The project will be delivered by Tiger Developments, with Watkin Jones as main contractor, and operated on completion by Host Student, Tiger’s sister company.

Moorfield is targeting an EPC A rating and BREEAM Excellent accreditation, aligning with both its and Investec’s sustainability objectives. The development sits opposite the University of Bristol’s planned Temple Quarter Enterprise Campus, set to open in 2026.

Mike Russell of Investec Real Estate said: “This transaction highlights our continued appetite to fund best-in-class Living sector developments alongside proven sponsors, in markets with compelling demand-supply dynamics.

“It also extends our partnership with Moorfield, following our £15.6 million financing of a 293-bed PBSA scheme in Lincoln, which completed at the end of 2023, and our £18.97 million committed loan facility to fund the acquisition and development of a 282-bed PBSA scheme in Colchester, Essex.”

Chris Perera, head of origination at Moorfield Group, added: “This latest financing with Investec will help us deliver another high-quality PBSA asset, providing much-needed accommodation for Bristol’s growing student population.

“Investec’s deep understanding of the sector and flexible approach makes them a trusted long-term partner and we are pleased to continue building on our relationship through this flagship development.”

EARLY MOVER IN PBSA

Investec has been active in the PBSA market since 2011, having delivered around £1.2 billion of lending across 64 schemes in 26 cities, equating to more than 22,500 beds. The bank has now supported 24 clients in the sector.

Moorfield also has a longstanding track record in student housing, having developed around 5,000 beds through its Domain platform since 1997. Its current strategy also includes ownership of more than 2,000 student HMO beds across the UK.

Investec said the latest financing reflects its ambition to back sustainable developments that support a transition to a lower-carbon economy, part of its commitment to Net Zero by 2050.