City student project gets £30 million loan boost

A property development firm has secured £30 million loan support to deliver a 200-plus-bed student accommodation scheme.

Asset Capital has been backed by Quantum Development Finance to create a Durham City hub.

Slated to be finished next summer, bosses say the £46 million, 232-bed venture – known as Melbury Court and overseen by contractor Caddick Construction – will “support the University of Durham’s fast-growing student population”.

Set over five storeys and based close to University Hospital of North Durham, they add the scheme will feature study rooms, a gym, a games area and a cinema.

Dan Newett, director at Wetherby-based Asset Capital, said: “Melbury Court will provide top quality accommodation for students for many years to come.

“Durham is not an easy place to get new housing approved and built, but Quantum got to grips quickly with our project and the dynamics in which we’re operating and structured a flexible facility that allows us to get work started on time.”

The deal marks Quantum’s second loan to Asset Capital in two years, having previously provided £11 million funding to develop a 34-unit mixed-use scheme in Harrogate, North Yorkshire.

Sam Hudson, Quantum head of portfolio management, added: “Dan and his team’s deep knowledge of the purpose-built student accommodation market continues to be invaluable.

“We look forward to supporting them on this scheme to get essential new accommodation in place before the start of the next academic year.”

Asset Capital additionally secured £22.7 million at the begininng of the year to deliver a 239-bed York student scheme.

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