Friargate Court, a purpose-built student accommodation (PBSA) scheme located off Market Street West, has been put up for sale by administrators following significant financial difficulties faced by its previous owner, Innovation Court. The property, which boasts 244 beds and has been operational since 2016, was acquired in 2023 but has since been plunged into administration with debts exceeding £10 million owed to its primary creditor, Cambridge and Counties Bank.
The Background of Friargate Court
The collapse of Innovation Court, led by Anthony Jackson, who sadly passed away in 2025, was attributed to “significant market challenges.” These included declining rental rates along with a notable slowdown in both domestic and international student enrolments at universities. Such factors have had a substantial impact on the financial viability of many PBSA projects across the UK, highlighting the importance of understanding market dynamics for investors.
Market Position and Opportunities
Knight Frank, the appointed marketing agent, is seeking offers of £9.75 million for Friargate Court. The firm has noted a distinct lack of available PBSA beds in Preston, coinciding with an uptick in student numbers seeking accommodation in the area. Toby Thomas, an associate in Knight Frank’s student property team, remarked, “Friargate Court offers a rare opportunity to acquire a well-located, operational PBSA asset at an attractive price point, in a market where supply still doesn’t meet demand.” This underscores the potential for investors, particularly as the property approaches the next academic year with strong letting momentum.
Investment Potential and Asset Management
Moreover, the scheme’s adaptability to accommodate key workers and apprentices adds further appeal, as it allows for income diversification. The opportunity for investors to enhance leasing performance through proactive asset management is significant. As the market faces challenges, properties that can adapt to changing demands will be better positioned for success. The potential for increasing rental income through effective management strategies makes Friargate Court an attractive proposition for savvy investors.