en.Wedoany.com Reported - Hampshire Trust Bank has provided a £13.5 million financing facility to support the repositioning of the Kirkstall Brewery campus in Leeds. The facility has an 18-month term and is secured against a former 664-bed student accommodation site in Kirkstall. The development includes a 442-bed element that has received full planning permission for conversion into 151 C3 residential apartments, while retaining 202 purpose-built student accommodation beds, creating a scheme with multiple potential end uses across both the private rental sector and student accommodation.
The financing has refinanced existing debt and partially repaid the previous lender. The student accommodation project structure provides time for asset management and stabilisation, allowing the scheme to be repositioned while maintaining flexibility across multiple exit routes. These routes include the sale or refinancing of the private rental sector element, the sale or long-term lease of the purpose-built student accommodation, or a sale of the entire site. No development is planned during the loan term, with the refurbishment of the purpose-built student accommodation element funded by borrower equity.
The transaction builds on progress already made at the site, including the sale of the eastern plot to an institutional investor and a long-term lease agreed with Leeds City Council for part of the retained accommodation. The lease is expected to save the council approximately £2.5 million per year over its term. Leeds City Council granted full planning permission for the private rental sector element in November 2025.
Alexia Evans, Lending Director at Hampshire Trust Bank, said: "This is a scheme where the key consideration is how the asset is managed over time, not just what it is at a single point. With planning in place and clear progress already made, the focus was on structuring a financing arrangement that allows it to continue moving forward without forcing an early decision, while aligning with how the site actually operates."
Johnny Grassick, Associate Director at GLPG, said: "There is no single, obvious exit route here, but that reflects the strength of the site. With planning in place, a number of viable paths forward and progress already made on parts of the scheme, the key was to create a structure that does not close off those options early. This gives the borrower the flexibility to capitalise on that momentum and choose the right path as the scheme evolves." The transaction was introduced by Johnny Grassick, Associate Director at GLPG, and led by Alexia Evans, Lending Director at Hampshire Trust Bank, with support from Olivia Emmett.
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