Investec Real Estate has provided a £21.34 million senior secured investment loan to refinance a 307-bed student accommodation development in Belfast.
The facility has been agreed with a joint venture between Bridges Fund Management and ROK Property, which owns The Edge, a purpose-built student accommodation scheme in the city’s Cathedral Quarter.
The refinancing follows the development’s practical completion in September 2024 and extends Investec’s existing lending relationship with Bridges, a specialist investment manager with more than 15 years’ experience in sustainable real estate.
The Edge comprises 307 studio apartments and communal facilities including a fitness suite, cinema room, private dining room, outdoor space and meeting facilities. The property is operated by Homes for Students.
The development is located next to Ulster University’s £350 million Belfast campus, which accommodates more than 15,000 students, and is approximately half a mile from the city centre.
BELFAST STUDENT ACCOMMODATION MARKET
Investec pointed to growth in Belfast’s full-time student population and a shortage of purpose-built accommodation relative to demand as factors supporting the financing.
The city’s higher education sector includes Ulster University and Queen’s University Belfast, while an expanding international student population has contributed to demand for accommodation.
The Edge’s proximity to the Ulster University campus and its position within an established student accommodation area were also factors in the lender’s assessment of the asset’s long-term income prospects.
Larrissa Field, of Investec Real Estate, says: “The investment case for UK PBSA remains compelling, underpinned by strong student demand, supportive demographic trends and structural undersupply.
“This transaction represents an excellent opportunity to support a high-quality asset in a strong Belfast location, while building on our existing relationship with Bridges. We look forward to supporting the sponsors on future opportunities.”
Celia Harrison, director at Bridges Fund Management, adds: “We’re proud to have created a development that we believe is a real asset to the local community and the city of Belfast more broadly – drawing on Bridges’ extensive experience of delivering highly sustainable residential accommodation in UK cities – and we’re delighted to be working with Investec as we welcome students for the 26/27 academic year.”
INVESTEC’S STUDENT HOUSING LENDING
The transaction adds to Investec’s lending activity in the UK student accommodation and co-living sectors, where the bank has completed £462 million of financing over the past three financial years.
Investec continues to target both development projects and established income-producing properties, working with sponsors and investment managers across the two sectors.
