Conygar, the firm behind Nottingham’s Island Quarter regeneration scheme, has secured up to £47.5m to support the development.
A wholly owned subsidiary of the company has entered into a new facilities agreement with Barclays comprising a development facility and an investment facility up to £47.5m in aggregate.
The facilities will enable the completion of the construction, targeted by the summer of 2024, and letting of the 693-bed student accommodation development at The Island Quarter site in Nottingham, and are secured solely against that development area.
The company is also proposing to raise a target of £30m of additional capital through the issue of zero dividend preference shares by way of a placing in early 2023.
The net proceeds from the issue are expected to be utilised to further continue the development of The Island Quarter site in Nottingham and may also be used for further acquisitions of investment properties and in realising value from the group’s other development projects.
Robert Ware, Chief Executive of the company, said: “We are delighted to have secured the facilities with Barclays which now enables both the completion and also the subsequent letting of the student accommodation development at The Island Quarter and the further progression of the opening up of this exciting and substantial mixed-use development.”
