Quantum Dev. Finance lends £30m for 232-unit PBSA scheme in Durham
SME housebuilding lender, Quantum Development Finance (Quantum) has provided a £30m loan to Asset Capital, to fund the development of Melbury Court, a £46m GDV, 232-bed purpose-built student accommodation (PBSA) scheme in Durham.
The scheme, which will be delivered by Caddick Construction and is due to complete in Summer 2027, will provide much-needed high-quality student housing along with modern amenities to support the University of Durham’s fast-growing student population.
Due to planning restrictions in Durham, including a city-wide Article 4, student bed supply is heavily constrained and there is a limited pipeline of new PBSA beds. Coupled with a 22% increase in student acceptances to the university for the 2026/27 academic year, the delivery of additional student housing is more pertinent than ever.
This transaction marks Quantum’s second loan to Asset Capital in two years, reflecting a strong working relationship between the two parties. Asset Capital first received £11m funding from Quantum to develop a 34-unit mixed-use scheme in Harrogate which completed in 2025.
This news comes after the recent announcement by Quantum of a £500m facility from Goldman Sachs, taking the international bank’s total funding capacity in Quantum projects to almost £700m. This funding supports Quantum’s recent expansion into the operational real estate sector as it broadens its lending activity to provide finance at all stages of a scheme’s lifecycle. Goldman Sachs’ facility allows Quantum to provide loans to more quality schemes across living sectors including PBSA, build-to-rent and other operational asset classes while continuing to focus on SME housebuilding.
Sam Hudson, head of portfolio management at Quantum, comments: “We are delighted to support another project for Asset Capital. Dan and his team’s deep knowledge of the PBSA market continues to be proven invaluable as they have obtained an excellent planning consent and executed a coordinated delivery strategy. We look forward to supporting them on this scheme to get essential new student accommodation in place before the start of the next academic year.”
Dan Newett, director of Asset Capital, adds: “Melbury Court will be built to achieve a BREEAM Excellent rating and will provide top quality accommodation and amenities for the University of Durham’s students for many years to come. Quantum has proven once again to be an ideal funding partner. Durham is not an easy place to get new housing approved and built, but Quantum got to grips quickly not only with our project but the dynamics in which we’re operating and structured a flexible facility that allows us to get work started on time so that we can deliver before next year’s new student intake arrive.”
Melbury Court is a five-storey scheme located on the northern edge of Durham, a 5-minute walk from the University Hospital and 10 minutes by bus to the university campus. Melbury Court will offer affordable modern student living to 232 young people every academic year. In addition to comfortable, private living spaces, tenants will benefit from study rooms, a gym, games area, cinema and private dining area.