Mercia Real Estate has successfully secured planning consent for the construction of an additional 129 units at its Haüs purpose-built student accommodation (PBSA) development located in Edgbaston. This significant milestone marks a further investment in the burgeoning student housing market, which is witnessing increasing demand in the UK.
Mercia is committing £32 million towards the transformation of part of the 95,000 sq ft former HSBC office complex into a total of 266 student beds. The initial phase of this development is on track for practical completion in June, with the facility anticipated to welcome its first students for the 2026/27 academic year. The newly approved planning consent will raise the total number of beds available at the Haüs scheme to 395. By the time this ambitious project reaches completion, Mercia will have invested more than £45 million into the comprehensive redevelopment of the building.
Innovative Design and Amenities
Haüs Edgbaston is designed with the concept of an exclusive members club in mind, incorporating a range of extensive on-site amenities tailored to enhance the student living experience. Future residents will benefit from facilities such as a fully equipped gym, a juice bar, a cinema room, a karaoke room, a games room, a content creation studio, private study zones, and a private dining room. These features not only cater to the lifestyle preferences of students but also position Haüs as a competitive offering within the UK PBSA market.
Developer’s Vision and Strategy
Samuel Clark, CEO of Mercia Real Estate, emphasised the importance of redeveloping existing properties and previously developed land as part of their proven value-add strategy. He stated, “Redeveloping existing buildings and previously developed land sits exactly alongside our proven value-add strategy. Applying this ethos across both industrial and residential sectors, enabled by our capital partners, will continue in 2026. Being able to showcase the show apartment’s beautifully finished spaces has brought our vision for Haüs to life, and we’re excited to welcome our first students this September so they can experience first-hand all of the building’s high-end and unique amenities.”
Partnerships and Community Impact
Nick Sweeney, city manager at Yugo, the company appointed to operate the building, expressed enthusiasm about the project, stating, “Haüs is a great example of thoughtful reuse done properly: strong amenity, clear student focus and an asset that’s built to perform operationally as well as experientially. We’re excited to bring Yugo’s student-first approach to Birmingham and to support Mercia Real Estate as their PBSA portfolio grows.”
In addition, Simon Dekker, senior relationship director at Paragon Bank, highlighted the significance of collaboration in this project. He noted, “This development shows how strong partnerships between developer, lender and landowner can repurpose existing buildings to create placemaking communities where they’re needed most. The scheme will support Birmingham’s education sector and wider regeneration ambitions. We’re proud to be one of the biggest investors in Edgbaston and look forward to funding more developments that bring positive impact to communities across Birmingham and the wider region.”