Commercial real estate investor, developer and asset manager, Firethorn Trust, has secured a £29.95million debt package from Leumi UK to deliver its first purpose-built student accommodation (PBSA) scheme.
The financing will support the delivery of a 230-bed PBSA project in Leith, which Firethorn acquired in February 2024.
Forming part of the Leith Walk redevelopment scheme, the site has planning permission to deliver a six-storey building featuring high quality accommodation and generous amenities, including a fully-equipped gym, modern study spaces and student common rooms.
Edinburgh’s PBSA market is materially undersupplied, with a student-to-bed ratio of 3.13:1 and a limited development pipeline. The Leith Walk development will help to address demand by creating much-needed bed spaces, while a modern and sustainable design specification will contribute towards BREEAM ‘Excellent’ and EPC ‘A’ ratings.
Richard Whitby, Chief Financial Officer at Firethorn Trust, commented: “The Leith Walk project required a partner that could provide a tailored financing solution to meet our bespoke needs, which is precisely what Leumi delivered.
“We are delighted to be working with Leumi on this development and are excited about the potential for collaboration on future projects as we grow our Firethorn Living platform.
“With our established track record in developing high-quality assets and generating strong returns, we are confident that this development will play a key role in addressing the critical need for modern student housing in Edinburgh’s vibrant university district.”
Dan Whiteman, Relationship Director at Leumi UK, added: “In many ways, this transaction epitomises what sets Leumi UK apart, as we were able to complete this transaction with great focus on ensuring the lending solution met the specific needs of the sponsor.
“Firethorn Trust has a strong track record of creating attractive and sustainable spaces, and we look forward to expanding our relationship as it grows its Living platform.”
The Leith Walk development is expected to complete in time for the 2026/27 academic year.
Firethorn Trust was advised by Brotherton, BCLP and CMS. Leumi UK was advised by Osborne Clarke and MFMac.
For more information, visit www.firethorntrust.com.