Octopus Property to provide £16m loan to Bristol student scheme

Lender Octopus Property has agreed a £16m development facility for Atlas Land’s 225-room Bristol student scheme. The 25-month loan will deliver the purpose-built student accommodation project as well as three commercial units in the city centre. Bristol-based development company Studio Hive has been appointed to manage the build-out of the scheme, which is expected to complete in time for the 2020 academic year. WRW Construction has been awarded the design and build contract, while CRM will take on the operational management of the scheme once it has completed. Gavin Eustace, head of residential development at Octopus Property, said: “The purpose built student accommodation sector remains one of the most attractive asset classes for investors due its defensive characteristics, while the Bristol market, with its above average supply demand imbalance and strong academic tradition, is a particularly compelling market in which to provide development finance. “With a highly regarded development manager and experienced main contractor in place, we look forward to building a lasting relationship with Atlas Land for the duration of this project and into the future.” Octopus Property is targeting £300m of development finance over the next 12 months. Its latest loan is the tenth PBSA transaction for the lender following last year’s Leicester and Ealing schemes, in which it lent £70m to support the delivery of circa 800 beds. Bristol is home to circa 50,000 university students, enrolled across two major higher education institutions. There are currently more than 15,000 PBSA beds in Bristol, while the development pipeline for the city is under 4,000 planned bed spaces, of which around 30% have been granted planning permission. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette