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UK: Arc & Co. has structured a debt and equity facility for a 135-bed purpose-built student accommodation (PBSA) development in Bristol.
The transaction brings together Downing LLP as senior debt provider and Hame Capital as equity partner in a strategic joint venture with the sponsor Colico Living.
The finalised financing package includes a circa £26 million senior development facility from Downing alongside a preferred equity investment from Hame Capital. Structured at approximately 68 per cent LTGDV and 77 per cent LTC, the facility is designed to support the full delivery of the scheme through to completion and stabilisation.
Arc & Co. have reached this facility after over a year of advisory work led by Corey Dennis, Arc & Co. senior broker, who guided the team to engineer a 100 per cent funding solution via a £26 million senior facility and preferred equity.
“This was a complex, multifaceted transaction given the scale of the project and the extensive planning process,” said Corey Dennis, senior broker at Arc & Co. “We carefully structured the funding package to ensure the scheme was fully capitalised while supporting the sponsor’s overall strategy. It was about finding that specific alignment between Downing and Hame Capital that truly recognised the project’s long-term value. We are seeing a market shift where developers are moving towards asset stabilisation over disposals, due to the slower sales market, which naturally impacts liquidity. In this environment, success depends on having a partner who understands the nuances of the entire capital stack and which senior and equity partners to approach. That depth of specialist knowledge played an important role in delivering the transaction.”
“We were delighted to close this significant funding package for an experienced and capable sponsor delivering a well-designed student scheme in central Bristol,” said Will Powell, investment director at Downing. “The financing came with a number of complexities concurrent with this type of deal, and we are looking forward to seeing the project progress over the coming months. A big thanks to all involved.”
The development is positioned to serve Bristol’s two leading universities and is now in a position to progress through Gateway 2, with construction slated to begin in early 2027.
Key contributions to the transaction included Scott Harvey at Hame Capital and Will Powell at Downing LLP.
Highlights:
• Arc & Co. has arranged a combined debt and equity financing package for a 135-bed purpose-built student accommodation (PBSA) scheme in Bristol on behalf of sponsor Colico Living
• The financing structure brings together Downing LLP as senior debt provider and Hame Capital as preferred equity partner through a strategic joint venture arrangement
• The package includes an approximately £26 million senior development facility alongside preferred equity investment, delivering a fully funded capital solution for the project
• Structured at around 68% loan-to-gross-development value (LTGDV) and 77% loan-to-cost (LTC), the facility is intended to support the scheme through construction, completion, and operational stabilisation
• The transaction followed more than a year of advisory work led by Arc & Co. senior broker Corey Dennis, resulting in a 100% funding solution combining senior debt and equity capital
