£69m green loan fuels landmark 540-bed student towers

LaSalle Investment Management has provided a £68.7m green loan to finance the delivery of Vita Group’s 540-bed student scheme in Birmingham.

Located on Gough Street, the 105,000 sq ft scheme will comprise two tower blocks standing at 10 and 29 storeys. It will include amenities such as private dining rooms, a hub space for socialising and studying, a gym, an outdoor basketball court, outdoor terraces and shared cycle storage. 

The building is targeting BREAAM ‘Excellent’ certification, with LaSalle’s green loan structured under the Loan Market Association’s green loan framework.

LaSalle says that the scheme will help address the undersupply of specialist accommodation in what is the UK’s second-largest student market, with five universities and around 80,000 students.

Revised plans were approved by Birmingham City Council in March 2023. Construction work, led by MRP is set to complete by August 2026. 

David White, head of LaSalle Real Estate Debt Strategies said: “This latest development loan completed by our Debt Investments platform maintains our strong pace of deployment, positioning our business as one of the most active real estate debt providers in Europe. 

“In Vita Group and MRP, we are working with two firms with best-in-class reputations for providing high-calibre, well-amenitised student accommodation and for successfully delivering large-scale PBSA schemes. Our investment in the Gough Street development provides our investors with exposure to a high-quality asset, supported by the strong fundamentals of Birmingham’s structurally undersupplied student market.”

Max Bielby, chief operating officer for Vita Group added: “We’re delighted to be working with trusted partner LaSalle to deliver this best-in-class student accommodation to the heart of Birmingham. The delivery of this building is well underway and will raise the standards of what students should and can expect from their accommodation experience in the city centre. We look forward to welcoming students from September 2026.”

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