Arc & Co. and Hampshire Trust Bank have finalised a £21.5 million development facility to deliver a 210-bed purpose-built student accommodation project in central Nottingham.
The funding package has been structured and arranged by Arc & Co., with Hampshire Trust Bank providing the finance. Construction is already under way and the scheme is scheduled for completion in time for the 2027 student intake.
The project is entering a market where student demand in Nottingham continues to exceed available supply. Both the University of Nottingham and Nottingham Trent University remain major draws for a growing student population, creating consistent pressure on accommodation capacity.
Philip Kay, Director at Arc & Co, said:
“PBSA remains a highly active sector for Arc & Co., and we were very pleased to support the sponsor on this important Nottingham scheme.
“Our role was to structure and arrange a funding solution that aligned with the developer’s requirements, and HTB proved to be an excellent partner throughout the process. Their ability to navigate the complexities of a transaction of this scale and deliver with certainty made them the right lender for this project.”
For Hampshire Trust Bank, the transaction reinforces its activity in the student housing sector, one of the more resilient segments of the regional property market. It also adds to the bank’s expanding portfolio of complex development finance projects.
Arc & Co. has been active across the UK this year, closing a series of large funding deals exceeding £20 million each. These include a £26 million bridging loan for a prime London residential property, a £36 million gross development value student accommodation scheme in London, and a £59 million loan secured against a hotel portfolio.
