FRP Real Estate Advisory completes debt and equity funding package for £40m Bristol PBSA scheme

The Real Estate Advisory team has structured a debt and equity funding package for a landmark purpose-built student accommodation development in Bristol, bringing together senior lender Downing LLP and equity partner Hame Capital in a joint venture with sponsor Colico Living.

Background

The scheme, positioned to serve Bristol’s two leading universities, required a fully capitalised funding solution to progress through Gateway 2 ahead of construction. With the sponsor’s capital heavily concentrated in the planning phase, the transaction demanded more than a decade of specialist advisory involvement, navigating a selective capital markets environment, intricate valuation challenges, and a full redraft of the planning application to satisfy amenity space requirements before approval was secured.

Action

Led by Associate Director Corey Dennis, the team engineered a 100% funding solution comprising a circa £26m senior development facility and a preferred equity investment, structured at approximately 68% LTGDV and 77% LTC.

The team aligned funding terms with the 43-month build programme, giving the sponsor long-term security and resolving a key developer pain point around liquidity through to stabilisation.

• Senior lender: Downing LLP – circa £26m senior development facility
• Equity partner: Hame Capital – preferred equity investment
• Structure: 68% LTGDV / 77% LTC, aligned to a 43-month build plan
• Sponsor: Colico Living, in strategic joint venture with Downing and Hame Capital
• Scale: 135-bed PBSA scheme in central Bristol
  

Outcome

The facility was successfully closed, fully capitalising the scheme through delivery and stabilisation and enabling the development to progress through Gateway 2, with construction slated to begin in early 2027.