Investec grants Barwood with £19.25m development loan for Birmingham PBSA scheme

Investec Bank plc, a leading international bank and wealth manager, today announces that its Corporate Real Estate team has provided Barwood with a £19.25 million senior development loan to finance the development and stabilisation of a 233-bed purpose-built student accommodation (“PBSA”) scheme in Edgbaston, Birmingham.

The 36-month facility supports Barwood, a new-to-bank client, in delivering a village-style student campus on the former St Cha’s Hospital site, originally constructed in 1808. The scheme will retain and refurbish two Grade II listed buildings, alongside the construction of three new buildings, creating a high-quality PBSA offering in one of the UK’s leading university cities.

Located in Edgbaston, the development benefits from strong underlying market fundamentals, with Birmingham a Russell Group city home to three major universities and a large, growing student population. The scheme is targeting delivery ahead of the 2026/27 academic year.

The loan has been structured to provide flexibility around the accelerated construction and delivery programme, supporting Barwood through the development phase and into stabilisation. The transaction also reflects Investec’s experience in funding complex assets, including schemes involving listed buildings, and its ability to tailor capital solutions to meet specific client requirements.

Alice Harman, Investec Real Estate, said:

“This transaction demonstrates our ability to support new clients with flexible, development-focused funding solutions, even where delivery timelines are compressed. By structuring a bespoke facility, we have helped Barwood progress a complex PBSA scheme that combines heritage refurbishment with new-build development, delivering much-needed student accommodation in a highly sought-after location. It has been a pleasure to work with the Barwood team on this facility.”

Ed Henson, Director and Head of Transactions, Barwood, said:

“We are delighted to have worked with Investec Real Estate on this exciting project. The Investec team took a refreshingly commercial outlook on the intricacies of this deal, which involved a complex development programme, including elements of new build and conversion, within a corporate structure that included external Funding Partners and Development Managers.” 

The project, known as “St Chads Student Village ”, will help meet growing demand in the city for modern, purpose-built student accommodation. The design, construction and operation of St Chads all seek to deliver a strong sense of community and inclusivity, amongst the residents.”

This transaction builds on Investec’s established track record in the UK PBSA sector, where it has provided c.£1.2 billion of funding since 2011. Recent examples include a £26 million development loan to Moorfield Group for a 204-bed PBSA scheme in Bristol and ongoing support for a range of student accommodation projects across key university markets, underscoring Investec’s continued commitment to supporting high-quality Living sector developments in locations with compelling demand-supply dynamics.