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Pollen Street Co-funds PBSA

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Pollen Street Capital (PSC) and lender Downing have announced their first property investments under a new partnership.

The companies have revealed a £24.3 million co-funded deal to develop two purpose-built student accommodation (PBSA) assets in Canterbury, with a combined total of 400 beds.

Commenting on the announcement, Parik Chandra, partner and head of property finance at Downing LLP, said the scheme would help tackle an undersupply of student accommodation.

He added: "The market for student accommodation is experiencing some challenges due to Covid and Brexit may also impact EU students studying in the UK. Nevertheless, the underlying dynamics of the UK student market remain strong."

"The undersupply of purpose-built student accommodation in cities across the UK is an ongoing issue which we aim to play our part in tackling by providing debt funding for projects of this kind."

PSC has snapped up around £30m of Downing's existing loanbook and is providing a funding line for future developments.