Asset Capital has recently secured a substantial £22.7m finance package from Paragon Bank, aimed at supporting the development of a 239-bed student accommodation project in York. This funding, provided by Paragon’s Development Finance division, will facilitate the refinancing of the acquisition of the Ramsey Drive site, where construction is set to begin.
Development Details
The Peppermill Court scheme is being constructed on the site of a former NHS mental health unit and is designed to incorporate sustainable features such as photovoltaic panels, triple glazing, and highly efficient insulation systems. With a gross development value of £34.7m, the project will feature 227 standard ensuite rooms, 10 adaptable ensuite rooms, and two specifically designed accessible ensuite rooms. This development is strategically positioned to primarily serve the needs of students attending York St John University and the University of York, which together host over 33,000 students.
Construction Timeline
Following the completion of site clearance, construction work is set to commence shortly. The anticipated completion date for Peppermill Court is summer 2027, aligning with the start of the 2027/28 academic year, thereby providing much-needed accommodation for incoming students.
Insight from the Developers
Simon Dekker, the senior relationship director at Paragon, was instrumental in leading the funding initiative, with valuable support from portfolio manager Izzy Sargeant. Dekker stated, “This project represents an exciting step forward for sustainable student accommodation, combining high-specification facilities with outstanding environmental credentials.” The collaborative efforts highlight Paragon’s commitment to enhancing their PBSA portfolio and Development Finance strategy.
Dan Newett, director at Asset Capital, expressed the firm’s vision, stating, “Peppermill Court sets a new benchmark for sustainable student living. Our commitment to environmental standards and modern amenities ensures that future residents will benefit from comfortable, energy-efficient accommodation in a thriving university city.” Newett also noted, “Paragon’s experience in the PBSA market set the bank apart from competitors, making them an ideal partner for this project.”
This development not only reflects a significant investment in the PBSA sector but also underscores the growing trend towards sustainability in student accommodation, an area increasingly prioritised by both investors and developers alike.