£84.5m funding boost for major student scheme
A major student accommodation scheme in Nottingham has been given a boost after developer Bricks Group secured £84.5m in funding from London Wall Lending.
The cash will be used to build the scheme on a former Royal Mail site in Nottingham, which is already under construction.
The scheme will see the transformation of the former Bendigo Building site in the centre of the city, which lay vacant for nearly two decades before its demolition in 2023. Once complete, the scheme will contain 752 beds over 13-storeys, with the potential to rise to 781 beds subject to planning permission.
The accommodation will be managed by Bricks’ in-house operating brand, true student, which has more than 7,000 beds across the UK. It will also provide a range of indoor amenities and landscaped gardens as well as commercial units on the ground floor.
The 28-month loan facility will fund the two-stage of the building by Graham Construction, with potential for a further £5.5m of funding to be unlocked.
The deal represents the latest collaborative venture between the two firms, with London Wall having funded the development and disposal of Bricks’ Discovery Quays 1 and 2 schemes in Salford Quays, as well as providing a further £4m gross facility to assist with the purchase of a 355-bed PBSA plot in Leeds.
John Graham Construction has been selected to deliver Bricks’ vision for the scheme, with Fladgate providing legal support and Knight Frank providing valuation services.
Lev Loginov, partner at London Wall, said: “This is our first investment in Nottingham, and is illustrative of our strategy to support ever-growing residential demand across the UK’s regional markets.
“With a strong student population spread out across two top-class universities, the city is going from strength to strength and presents exciting opportunity for development. Having worked extensively with Bricks in the past, we’re confident in the business’ ability to seize on this sentiment and provide a top-quality option for the area’s student community.”
Peter Prickett, founder and CEO of Bricks Capital said: “We have a well-established relationship with London Wall built over a number of successful projects, so when the chance arose to deliver much-needed student accommodation in such an iconic Nottingham building, we knew that it was one we needed to take.
“The UK remains an attractive proposition to both home and international students, and we’re continuing to experience surging demand for the services provided through our true student brand. We look forward to meeting the students of Nottingham and working to allow them to make the most of their university experience in the years to come.”
London Wall Lending is an alternative lender, specialising in development loans across the real estate sector. Co-founded by Lev Loginov, James Archer and Ned El-Imad, the firm is backed by multiple UHNW individuals, syndication partners and institutional investors, and has provided over £650 million in funding to date. The business recently launched a listed £300m bond in a move to expand its investor base.
