Almost £50 million of funding has been agreed to support the completion of a 693-bed student accommodation scheme in The Island Quarter site, Nottingham.
Developer Conygar said it had agreed up to £47.5 million of new banking facilities with Barclays, secured against the city centre development area. The money will not only pave the way for completion of the student flats in the summer of 2024, but also support their subsequent letting.
Conygar said it also hoped to raise £30 million of additional capital through the issue of zero dividend preference shares early this year to further invest in The Island Quarter site and potentially use for property acquisitions and investment in its other projects.
Chief executive Robert Ware said: “We are delighted to have secured the facilities with Barclays which now enables both the completion and also the subsequent letting of the student accommodation development at The Island Quarter and the further progression of the opening up of this exciting and substantial mixed-use development.”
The Conygar Investment Company PLC took ownership of the 36-acre Island Quarter site in 2016, with the overall masterplan for The Island Quarter achieving outline planning in 2019.
The developer recently put in plans for 249,000 sq ft of bioscience laboratory and office space within the development.
As well as labs and offices the bioscience space will have conference facilities and car parking and be located next to the city’s existing bioscience hub.
The overall development is a big part of the regeneration of Nottingham’s southside with the developers working closely with Nottingham City Council. Trading has already started in the first phase of the scheme near Nottingham lace market.
Back in May, detailed planning permission was given for another plot, which will have two hotels to be managed by Intercontinental Hotels Group, co-working space, 247 build to rent apartments, plus food and drinks outlets.
