Asset Capital has obtained a £22.7 million funding package from Paragon Bank to support the development of a 239-bed Purpose Built Student Accommodation (PBSA) scheme in York.
The funding, provided by the FTSE 250 bank’s Development Finance division, will refinance Asset Capital’s acquisition of the Ramsey Drive site and support construction of the property.
The ‘Peppermill Court’ development will be built on the former site of an NHS mental health unit and aims to meet high environmental and sustainability standards. Photovoltaic panels will be installed on the roofs of the two blocks, along with triple glazing and high levels of insulation. To support biodiversity, the site will also feature bat and bird boxes.
Peppermill Court, with a Gross Development Value of £34.7 million, will include 227 standard ensuite rooms, 10 adaptable en-suites, and two accessible en-suites.
The development will primarily serve students at York St John University in the city centre, as well as the University of York. The city is home to over 33,000 students across the two main universities.
Site clearance has been completed, and development is now underway. Practical completion is expected by summer 2027, in time for the 2027/28 academic year.
The funding package was led by Simon Dekker, senior relationship director at Paragon, with support from portfolio manager Izzy Sargeant. This project adds to Paragon’s portfolio of PBSA schemes as part of its development finance diversification strategy.
Dan Newett, director at Asset Capital, said, “Peppermill Court sets a new benchmark for sustainable student living. Our commitment to environmental standards and modern amenities ensures that future residents will benefit from comfortable, energy-efficient accommodation in a thriving university city. This project reflects our ongoing dedication to quality and innovation in student housing.”
“Paragon’s experience in the PBSA market set the bank apart from competitors. Simon and the team’s experience in this space stood out, which made them an ideal partner for this project.”
Simon Dekker added, “This project represents an exciting step forward for sustainable student accommodation, combining high-specification facilities with outstanding environmental credentials. Our team’s expertise in the PBSA sector enabled us to structure a funding package tailored to the needs of both the developer and the city’s vibrant student community.”
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