Downing secures £215m bank funding for student schemes
NatWest, HSBC UK and Barclays have agreed a £214.6m funding deal for three student housing projects, developed by Liverpool-based developer Downing Group.
Downing Group’s three student accommodation schemes are in Coventry, Manchester and London.
The deal, which represents 65% of the total development costs, will go towards the construction of 2,201 units across the three cities.
NatWest, HSBC UK and Barclays have agreed a £214.6m funding deal for three student housing projects, developed by Liverpool-based developer Downing Group.
Downing Group’s three student accommodation schemes are in Coventry, Manchester and London.
The deal, which represents 65% of the total development costs, will go towards the construction of 2,201 units across the three cities.
The development at Belgrade Plaza in Coventry is set to complete in August, while works at River Street in Manchester are expected to finish in July 2020.
The scheme at Miles Street in London is slated to complete in July 2021.
The trio of banks have split the funding equally at around £71.5m each.
Simon Garnett, financial director of Downing Group, said: “This agreement offers a tangible indication of the level of confidence our portfolio inspires and will support the group as we transition into our next phase of growth.
“Demand for high-quality student accommodation remains high and Downing Group continues to go from strength to strength, building on our market-leading portfolio, outstanding reputation, and strong presence across the UK’s leading cities.”
Hugh MacDonald, director of real estate finance, said: “Student accommodation remains a hugely attractive sector. Coventry, Manchester and London are all fantastic cities and we’re proud to be able to help facilitate the development of premium accommodation for the student population.”
Downing Group has a portfolio of more than £1.1bn, and has developed more than 12,000 student bedrooms in the UK.
It has nomination agreements in place with universities including King’s College London, the University of Leeds, and the University of Warwick.
Kevin Dawson, HSBC UK’s relationship director for housing, said: “We’ve worked with Downing Group since 2009 and seen it grow from two to three schemes per year to an enviable six to eight over that period.
“These three developments will make fine additions to Downing’s already diverse portfolio and we look forward to supporting the group as it continues to significantly scale up its presence in the UK.”
Ross Mackay, director of Barclays Real Estate Finance, said: “It’s great to expand our relationship with Downing Group by supporting them on three excellent schemes which will bring high quality student accommodation to Coventry, Manchester and London.”
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