Atelier has provided a £16 million development finance loan to fund the refurbishment of a 150-bed purpose-built student accommodation scheme in Cambridge, marking the lender’s ninth transaction with developer Rengen.
The 20-month loan will finance the conversion of a first-generation student accommodation block into modernised facilities featuring 150 en-suite bedrooms, study spaces, a residents’ lounge and a cinema room.
Phased delivery timeline
Completion is scheduled in two phases, with 50 beds targeted for occupation ahead of the 2026/27 academic year and the remaining 100 beds due for completion in January 2027. The scheme is positioned to serve students at both the University of Cambridge and Anglia Ruskin University.
Avi Miller, credit director at Atelier, said the transaction reflected the relationship built with Rengen over multiple years. “Their specialist expertise in repositioning first-generation PBSA assets, combined with a proven track record of successful delivery, gave us great confidence in this opportunity,” Miller stated.
Market context
The Cambridge student accommodation market faces growing demand from increasing student numbers at both institutions. The refurbishment approach reflects a broader trend in the PBSA sector, where developers are updating older stock to meet current standards, similar to ongoing challenges in housing supply across England.
Iestyn Lewis, founder and CEO at Rengen, noted the lender’s ability to structure the facility efficiently. “The Atelier team delivered once again, working to tight timescales while structuring a facility that provided the right level of Day One advance,” Lewis said.
The transaction represents continued investment in the student accommodation sector, where first-generation assets are being repositioned to compete with newer developments. The financing structure accommodated the technical requirements associated with refurbishing occupied student properties.