Asset Capital has secured a £22.7 million funding package from Paragon Bank to support the development of a 239-bed Purpose Built Student Accommodation (PBSA) scheme in York.
The funding from the FTSE 250 bank’s Development Finance division will be used to refinance the company’s acquisition of the Ramsey Drive site and support the development of the property.
The ‘Peppermill Court’ development is built on the site of a former NHS mental health unit and will be constructed to the highest environmental and sustainability standards, with photovoltaic panels on the roofs of the two blocks, triple glazing and high levels of insulation. To encourage biodiversity and local wildlife, the site will also contain bat and bird boxes.
The development, which has a Gross Development Value of £34.7 million, will include 227 standard ensuite rooms, with 10 adaptable en-suites and two accessible en-suites.
POPULAR STUDENT CITY
Peppermill Court will primarily serve the popular York St John university, located in the centre of the city, as well the University of York. York is a popular student city, with over 33,000 students studying at the two main universities.
Site clearance has been completed, with development underway. Practical completion is expected by summer 2027, ready for the 2027/28 academic year.
The funding was led on behalf of Paragon by Senior Relationship Director Simon Dekker, with support from Portfolio Manager Izzy Sargeant.
This latest development adds to Paragon’s portfolio of PBSA as part of its development finance diversification strategy.
NEW BENCHMARK
Dan Newett, Director at Asset Capital, says: “Peppermill Court sets a new benchmark for sustainable student living. Our commitment to environmental standards and modern amenities ensures that future residents will benefit from comfortable, energy-efficient accommodation in a thriving university city. This project reflects our ongoing dedication to quality and innovation in student housing.
“Paragon’s experience in the PBSA market set the bank apart from competitors. Simon and the team’s experience in this space stood out, which made them an ideal partner for this project.”
SUSTAINABLE ACCOMMODATION
Simon Dekker adds: “This project represents an exciting step forward for sustainable student accommodation, combining high-specification facilities with outstanding environmental credentials.
“Our team’s expertise in the PBSA sector enabled us to structure a funding package tailored to the needs of both the developer and the city’s vibrant student community.”
