Shawbrook has provided £3.1m in development finance for the redevelopment of The Old Tavern in Stapleton, Bristol, into a 33-bed purpose-built student accommodation scheme.
The 16-month funding facility will support the conversion of the former pub site. The completed development has an estimated gross development value of about £4.6m.
The transaction highlights the continued use of finance for the repurposing of older commercial buildings where a site can be adapted to meet residential demand. Former hospitality premises can offer redevelopment opportunities, although delivery depends on planning, construction costs and local accommodation needs.
For investors and developers monitoring European housing markets, the project is a reminder that student accommodation is often assessed separately from conventional rental housing because of its operational model and tenant base. Details of the Bristol financing were reported by PropertyWire.