New Agreement For £40m 282-bed Colchester PBSA

Moorfield Group, a UK real estate find manager, has entered into a development agreement with Melberry Developments on behalf of Moorfield Real Estate Fund IV, to build a 282-bed PBSA in Colchester.

The gross development value of the project is £40m and is in-line with Moorfield's 2030 net zero commitment, incorporating their first ESG-linked agreement. The development team are specifically incentivised to achieve a BREEAM 'excellent' rating .

The PBSA is to be located on Hawkins Road, just a short walk to the main University of Essex campus. It is expected to be complete in time for the 2023-24 academic year.

Accommodation will be spread over nine floors and consist of a mixture of clusters and studios. There will also be communal spaces, including social, study and gaming spaces, and indoor and outdoor fitness suites.

This will be the first time Moorfield has partnered with Melberry Developments, who have a track record in delivering successful projects in the PBSA sector.

Head of Origination at Moorfield Group, Ross Netherway, stated: "The PBSA sector has been one of our conviction calls for over 20 years, and despite the short-term disruption caused by the pandemic, the longer-term demographic drivers remain hugely favourable. The University of Essex faces a critical supply / demand imbalance of high-quality student accommodation, which underpins our confidence in the future success of this scheme."

David Sarson, Managing Director of Melberry Developments, commented: "We are delighted to be working with Moorfield to deliver this exciting first development in our planned pipeline together. Our alignment in quality and ESG objectives made agreeing the outcomes of the partnership clear from day one and we look forward to completing a fantastic asset."