The 122-studio project, which will be operated by Unilife, is due to complete by the 2024/25 academic year. 

Located in Southampton city centre, it is being constructed on a former Bank of England site where the high street frontage — which is Grade II-listed — will be retained as part of the development. 

Features will include communal socialising and amenity areas across its five storeys, as well as a restaurant and bar on the ground floor.
 
Stelling will be manufacturing the property offsite in Hampshire, with the development aiming to deliver sustainable advantages over a traditional build by reducing the overall environmental impact of the project from start to finish, while offering operational cost savings.

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This is Investec’s second transaction with Stelling, having previously supported the modular development specialist with a £11m senior facility to fund Riverside House, a 99-studio student scheme in Guildford. 

Ian Burdett, at Investec Real Estate, commented: “Working with repeat borrowers has been key to our loan book resilience, and Stelling’s innovative utilisation of modular construction methods ensures they deliver high-quality schemes in an efficient and sustainable manner.”

Jose Ignacio Alvarez, executive chairman at Stelling Properties, added: “We are thrilled to be partnering with Investec once again, following the success of Riverside House in Guildford.

“This project will not only provide much-needed quality PBSA in the area, but by utilising modular construction it will also bring an historic building back to its original glory and help to revive a busy city centre high street.