en.Wedoany.com Reported - UK-based Atelier has provided a £16 million development financing loan to developer Rengen for the refurbishment of a 150-bed purpose-built student accommodation (PBSA) project in Cambridge, marking the ninth transaction between the two parties.

The 20-month loan will be used to transform a first-generation student accommodation block into modern facilities, including 150 en-suite bedrooms, study spaces, a residents' lounge, and a cinema room. The project will be completed in two phases: 50 beds are scheduled to be ready before the 2026/27 academic year, with the remaining 100 beds expected to be completed by January 2027. The accommodation will serve students from the University of Cambridge and Anglia Ruskin University.

Avi Miller, Credit Director at Atelier, stated that this loan is a continuation of the multi-year partnership between the two parties. Miller said: "Their expertise in repositioning first-generation PBSA assets, combined with a proven track record of successful delivery, gives us confidence in this opportunity."

The Cambridge student accommodation market is facing rising demand driven by student population growth at both universities. The refurbishment approach reflects a broader trend in the PBSA sector, where developers are upgrading older stock to meet current standards, similar to ongoing challenges in England's housing supply sector.

Iestyn Lewis, Founder and CEO of Rengen, noted that the lender was able to structure the financing solution efficiently. Lewis said: "The Atelier team has once again delivered on its promises, working within a tight timeline while structuring a financing solution that provides appropriate upfront capital."

This transaction represents continued investment in the student accommodation sector, where first-generation assets are being repositioned to compete with new-build projects. The financing structure addresses the technical requirements associated with refurbishing occupied student properties.

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