LaSalle Investment Management has provided a £68.7m green loan to Vita Group to finance the delivery of a 540-bed purpose-built student accommodation scheme in Birmingham.
Located on Gough Street in Birmingham city centre, the 105,000-sq-ft scheme will comprise two tower blocks, of 10 and 29 stories respectively, with amenities including private dining rooms, a gym, an outdoor basketball court, outdoor terraces and shared cycle storage.
The building is designed to be highly sustainable, targeting BREAAM ‘Excellent’ certification, with LaSalle’s green loan structured under the Loan Market Association’s green loan framework.
Vita’s scheme had received planning approval in 2022. The site formerly comprised two parts – the Birmingham United Services Club building and 126 Suffolk Street Queensway, a print works.
David White, head of LaSalle Real Estate Debt Strategies, said: “This latest development loan completed by our debt investments platform maintains our strong pace of deployment, positioning our business as one of the most active real estate debt providers in Europe. In Vita Group and MRP, we are working with two firms with best-in-class reputations for providing high-calibre, well-amenitised student accommodation and for successfully delivering large-scale PBSA schemes. Our investment in the Gough Street development provides our investors with exposure to a high-quality asset, supported by the strong fundamentals of Birmingham’s structurally undersupplied student market.”
Max Bielby, chief operating officer for Vita Group, added: “The delivery of this building is well under way and will raise the standards of what students should and can expect from their accommodation experience in the city centre. We look forward to welcoming students from September 2026.”
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