Delancey backs €28.7m PBSA scheme as London's student housing shortage reaches critical point

London's student accommodation crisis has reached a tipping point, with Delancey stepping forward with a €28.7m senior secured facility to address the supply shortage through a strategic partnership with Hurlington Capital and The V Fund. The refinancing of a development site in Acton represents more than just another property deal - it signals a calculated bet on London's most underserved student housing market.

The scheme promises to deliver 429 purpose-built student accommodation beds alongside 95 affordable homes across two plots, transforming approximately 4,088 m² of underutilised commercial and light industrial space. What makes this development particularly compelling for investors is its strategic positioning within the broader Bollo Lane masterplan, where Transport for London's partnership with Barratt Homes is creating a new urban quarter that will benefit from Crossrail connectivity and proximity to Chiswick High Street's premium amenities.

The timing couldn't be more crucial. With the student accommodation scheduled for delivery in the 2028/29 academic year, the development directly addresses the severe undersupply affecting prestigious institutions, including Imperial College, University of West London, and Richmond American University. This supply-demand imbalance has created a golden opportunity for investors, with rental yields in London's PBSA sector consistently outperforming traditional residential investments.

"Delancey has proven to be a reliable funding partner for this transaction thanks to their flexibility, speed and certainty of execution. This loan will replace an existing financing facility and cover pre-construction costs as we look to move forward in delivering another market-leading PBSA-led residential scheme in an area witnessing significant regeneration and investment that will be supportive of our proposed development," said Harry de Lotbiniere from Hurlington Capital.

Martin Kom, Director of Real Estate Strategies at Delancey, emphasised the strategic value: "We are pleased to partner with Hurlington Capital, a highly experienced sponsor with a proven track record, on this well-located opportunity. We are very excited by the regeneration already underway in the surrounding area, with the next phase, led by TfL, expected to attract substantial inward investment and drive long-term value appreciation. We remain convicted in the London PBSA sector, which continues to be underpinned by a fundamental supply-demand imbalance."

This transaction forms part of Delancey's aggressive expansion into London's real estate credit market, following notable participations in the €275.3m refinancing of 280 Bishopsgate (a 25,548 m² Grade A office building) and the €158.3m refinancing of the Notting Hill Gate Estate (17,187 m² freehold estate). For developers and investors, the deal highlights a critical market insight: institutions are increasingly viewing London's student housing sector as a defensive asset class with inflation-protected income streams, particularly in regeneration zones where government infrastructure investment de-risks future returns.

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