en.Wedoany.com Reported - Arc & Co. has structured a combined debt and equity financing package for a 135-bed purpose-built student accommodation (PBSA) project in Bristol, introducing senior lender Downing LLP and equity partner Hame Capital into a joint venture structure with project sponsor Colico Living.

The financing package includes an approximately £26 million senior development loan from Downing and a preferred equity investment from Hame Capital, with the facility arranged at roughly 68% loan-to-GDV and 77% loan-to-cost, ensuring project completion and transition into stable operation. Senior broker Corey Dennis led the team through over a year of advisory work, overcoming valuation challenges in tight market conditions and facilitating the re-submission of the planning application to meet amenity space requirements, which was ultimately approved.

Corey Dennis stated: "This was a multi-layered transaction shaped by the project's scale and long-cycle planning. We carefully calibrated the financing structure to ensure the project was fully funded while aligning with the sponsor's overall strategy. The key was identifying the alignment on the project's long-term value between Downing and Hame Capital."

He also noted that with the current slowdown in the sales market, developers are shifting from asset disposals to holding until operational stability, impacting liquidity. Therefore, having a partner who understands the overall capital structure and can match the right senior and equity counterparties is particularly crucial.

Downing Investment Director Will Powell said: "We are pleased to complete this financing for an experienced sponsor, supporting the development of well-designed student accommodation in central Bristol. Although the transaction involved some concurrent complexities, we look forward to the project progressing over the coming months and extend our thanks to all parties."

The student accommodation development, located close to Bristol's two main universities, is now ready to proceed to Gateway 2 stage, with construction planned to commence in early 2027. Scott Harvey of Hame Capital and Will Powell of Downing made key contributions to the transaction.

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