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Octopus Property Provides Finance for Bristol Scheme

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Octopus Property is financing a new student housing development in Bristol City Centre.

The company will provide Atlas Land with a £16m loan to develop a 225-bed purpose-built student accommodation scheme.

Once constructed, the site will be managed by Studio Hive and is expected to become operational in time for the 2020-21 academic year.

Commenting on the deal, Gavin Eustace, the head of residential development at Octopus Property, said: "The purpose-built student accommodation sector remains one of the most attractive asset classes for investors due its defensive characteristics, whilst the Bristol market, with its above-average supply-demand imbalance and strong academic tradition, is a particularly compelling market in which to provide development finance."

"With a highly regarded development manager and experienced main contractor in place, we look forward to building a lasting relationship with Atlas Land for the duration of this project and into the future."

The 25-month loan represents the tenth PBSA transaction for Octopus Property, following similar deals last year for developments in Leicester and Ealing.

Managing director at Atlas Land, Alan Chaytor, added: "This has been a significant investment by Atlas Land in a prime regional centre with a strong university base. I am delighted to be working with Octopus property and Studio Hive in delivering a quality PBSA scheme and helping to regenerate a derelict site into a desirable student scheme."