Puma Property Finance (“Puma”) today announces it has provided a debt facility of £72 million, to the joint venture between Olympian Homes and Housing Growth Partnership (HGP), to deliver a 790-bed Purpose Built Student Accommodation Scheme (“PBSA”) in Nottingham city centre. The scheme, known as Forest Mill, will also include 19 affordable homes and has a gross development value of c. £120 million.
The development will comprise 790 beds across three buildings and feature amenities that are becoming increasingly desirable to the student population, including a cafe, co-working space, gym, yoga studio, cinema room, garden terrace and games area with table tennis, air hockey, fussball, shuffleboard and a gaming booth. The site is conveniently located on Alfreton Road, which is a 10-minute walk from the Nottingham Trent University campus, around a 10-minute bus ride from the University of Nottingham Jubilee Campus and approximately a 15-minute walk from the city centre.
The site adjacent to the PBSA blocks will see the delivery of 19 high quality affordable homes. The three-bedroom family homes will contribute to the Council’s housing delivery targets and provide accommodation for residents on low incomes in a crucially underserved area.
The site was acquired in September 2021 and construction began in December 2023. Practical completion is expected in time for students entering the 2025/26 academic year.
Kevin Davidson, Managing Director and Rahul Malde, Senior Manager at Puma Property Finance, commented: “We are delighted to be working with HGP again and undertaking our first financing with the highly experienced developer, Olympian Homes, in what is our largest debt funding transaction to date. PBSA remains one of our core lending sectors as the shortfall of student accommodation continues to increase. Having financed schemes across the UK, including Scotland and Northern Ireland, this deal represents an opportunity to deliver much needed accommodation in another strong university city. We continue to have robust appetite to support further PBSA schemes for credible developers in strong locations across the UK.”
James Lindridge, Development Director at Olympian Homes, commented: “We are thankful for the pragmatic nature of Nottingham City Council in supporting our vision and addressing the supply/demand imbalance of PBSA and affordable homes within Nottingham. We look forward to progressing works onsite and contributing to Nottingham’s ambitious growth plans. The transaction demonstrates the high level of investor confidence in the UK PBSA sector, despite the turbulent macro-economic backdrop. We have enjoyed working with both Puma and HGP and believe this will be the start of a strong, long-term partnership.”
Colin Bennee, Investment Director at Housing Growth Partnership, added: “Puma Property Finance has been a key finance partner and supporter of HGP, and we are delighted to be working with them again on this landmark development with joint venture partner Olympian Homes. HGP has strong appetite to invest in the PBSA sector, having recently supported new developments in Glasgow and Dundee, and we are looking forward to working closely with Olympian and Puma in delivering much needed PBSA beds in Nottingham.”