“This was a complex, multifaceted transaction given the scale of the project and the extensive planning process”
– Corey Dennis – Arc & Co.
Arc & Co. has structured a combined debt and equity PBSA development finance package for a 135-bed student accommodation scheme in Bristol, bringing together Downing LLP as senior debt provider and Hame Capital as equity partner in a joint venture with sponsor Colico Living.
The finalised package comprises a senior development facility of around £26m from Downing, alongside a preferred equity investment from Hame Capital. Structured at approximately 68% loan-to-gross development value and 77% loan-to-cost, the financing is designed to support full delivery of the scheme through to completion and stabilisation.
The transaction represents more than a year of advisory work led by senior broker Corey Dennis. During that period, the team navigated a selective capital markets environment, managed complex valuation challenges, and facilitated a full redraft of the planning application to address amenity space requirements before securing approval. The result is a 100% funding solution aligned with the scheme’s 43-month build programme, giving the sponsor long-term certainty over its capital position.
“This was a complex, multifaceted transaction given the scale of the project and the extensive planning process,” said Corey Dennis, senior broker at Arc & Co.
“We carefully structured the funding package to ensure the scheme was fully capitalised while supporting the sponsor’s overall strategy. It was about finding that specific alignment between Downing and Hame Capital that truly recognised the project’s long-term value.”
“We are seeing a market shift where developers are moving towards asset stabilisation over disposals, due to the slower sales market, which naturally impacts liquidity. In this environment, success depends on having a partner who understands the nuances of the entire capital stack and which senior and equity partners to approach. That depth of specialist knowledge played an important role in delivering the transaction.”
Will Powell, investment director at Downing, welcomed the outcome. “We were delighted to close this significant funding package for an experienced and capable sponsor delivering a well-designed student scheme in central Bristol,” he said.
“The financing came with a number of complexities concurrent with this type of deal, and we are looking forward to seeing the project progress over the coming months. A big thanks to all involved.”
The development is positioned to serve Bristol’s two leading universities and is set to progress through Gateway 2, with construction expected to begin in early 2027. Scott Harvey at Hame Capital and Will Powell at Downing LLP were among the key contributors to the transaction.
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