Investec provide £26m loan to Moorfield Group for 204-bed PBSA scheme in Bristol

Investec Bank plc, a leading international financial services provider, has provided Moorfield Group (“Moorfield”), a UK-focused real estate fund manager, with a £26 million senior debt facility, to fund the development and stabilisation of a 204-bed purpose-built student accommodation (“PBSA”) scheme in Bristol.

Situated on Freestone Road, within the Temple Meads Quarter regeneration area, the development will deliver a mix of studios and cluster rooms, supported by best-in-class amenities including a gym, communal lounge, games area, study spaces, laundry facilities and landscaped courtyards.

Moorfield is targeting an EPC A rating and BREEAM Excellent accreditation, which reflects both Moorfield’s and Investec’s commitment to delivering sustainable, future-fit assets. It benefits from a prime location opposite the University of Bristol’s forthcoming Temple Quarter Enterprise Campus, which is due to open in 2026 and will house the Business School, research centres and innovation hubs.

The development will be delivered by Tiger Developments (“Tiger”), with Watkin Jones appointed as main contractor. Tiger’s sister company, Host Student, has been appointed to operate the scheme once completed.

Mike Russell, Investec Real Estate, commented: “This transaction highlights our continued appetite to fund best-in-class Living sector developments alongside proven sponsors, in markets with compelling demand-supply dynamics. It also extends our partnership with Moorfield, following our £15.6 million financing of a 293-bed PBSA scheme in Lincoln, which completed at the end of 2023, and our £18.97 million committed loan facility to fund the acquisition and development of a 282-bed PBSA scheme in Colchester, Essex.”

Chris Perera, Head of Origination at Moorfield Group, said: “This latest financing with Investec will help us deliver another high-quality PBSA asset, providing much-needed accommodation for Bristol’s growing student population. Investec’s deep understanding of the sector and flexible approach makes them a trusted long-term partner and we are pleased to continue building on our relationship through this flagship development.”

This transaction builds on Investec’s strong track record in the UK PBSA sector, which has seen it provide c. £1.2 billion of funding since 2011.

Moorfield also has a strong track record in the student housing market, having delivered c. 5,000 beds through Domain, its in-house PBSA development and operational platform established in 1997. A further 2,000+ beds are being aggregated through Moorfield’s student houses strategy, which acquires and modernises student HMOs.

Investec seeks to partner with clients in their efforts to reduce carbon emissions by lending to projects that contribute to a transition to a lower-carbon economy. This focus reflects the bank’s ambition to promote sustainable growth and environmental responsibility, as well as its intention to work towards its Net Zero goals by 2050.