Developers seal £32m finance deal for 388 new student flats in Lancaster

Property finance specialist Maslow Capital is providing two loans to a joint venture between H.I.G. Realty Partners and Primus Property Group.

The loans will help bring forward a total of 790 student beds across two university cities, Lancaster and Leeds.

Funding of £36m will be allocated to a development of 402 studios located on Regent Street, less than a mile east of Leeds city centre.

A further £32m will support the development of a second student accommodation scheme in the city of Lancaster, comprising 388 studios.

The scheme, featuring two accommodation blocks, will be built on the connecting two pieces of land between Caton and Bulk Road in Lancaster, near to where the 630-bed Caton Court student flats were built in 2019.

Dana car wash was on part of the site, as was A Cut Above carpet shop.

Planning permission for the student blocks in Lancaster was granted on January 13 of this year.

Developers scale down plans for more student flats in Lancaster

Both projects will offer amenities including games rooms, common living areas, private dining rooms, group study spaces, cinema rooms, gyms, yoga studios, and outdoor social areas.

Rachael Gordon, head of deal execution at Maslow Capital, said: "The notable increase in the international student population in both Lancaster and Leeds has intensified the demand for high-quality student accommodation in these cities.

"The early reservation of properties and the heightened demand for homes within walking distance of universities are trends apparent in both cities.

"With esteemed universities experiencing a surge in enrolments, the supply of purpose-built student accommodations is pivotal."

The H.I.G. Realty Partners and Primus Property Group joint venture was advised by JLL.