UK: Puma Property Finance has provided a debt facility of £72 million a 790-bed PBSA scheme in Nottingham.
The loan, to a JV between Olympian Homes and Housing Growth Partnership (HGP), is Puma’s largest to date. The scheme, known as Forest Mill, will also include 19 affordable homes and has a GDV of £120 million.
The development will comprise 790 beds across three buildings and feature amenities including a cafe, coworking space, gym, yoga studio, cinema room, garden terrace and games area. The site is located on Alfreton Road, which is a 10-minute walk from the Nottingham Trent University campus, a 10-minute bus ride from the University of Nottingham Jubilee Campus and a 15-minute walk from the city centre.
The site adjacent to the PBSA blocks will see the delivery of 19 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 at Puma, said: “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. 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, added: “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. 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.”
