Birmingham-based property investor and asset manager Mercia Real Estate has secured a £32.5m funding package from Paragon Bank’s Development Finance division to support the first phase of its 411-bedroom Purpose Built Student Accommodation (PBSA) scheme in Edgbaston.
Located on Calthorpe Road in Edgbaston, the existing office complex contains two buildings connected by a link block. Previously used as offices by HSBC, phase one will see the refurbishment of building 1 to deliver a 266 unit student accommodation scheme, with building 2 proposed as a further 145 units. This is currently being submitted into planning as a change of use from the incumbent planning permission for a 140 bed hotel.
Mercia Real Estate secured the £32.5m funding from Paragon Bank’s Development Finance division to refinance an existing land loan on the two commercial units occupying the site and to convert the first site into student accommodation.
Work has already commenced on the initial phase and will be complete by September 2026, enabling students to move in for the 2026/2027 academic year.
The new scheme is close to Five Ways train station, providing a four-minute train journey to both Birmingham New Street and University train stations. The site also benefits from multiple bus routes serving both Birmingham University and Birmingham City University, whilst being located immediately adjacent to the city centre.
Samuel Clark, founder and CEO at Mercia Real Estate, commented: “We will be soon launching our student brand in our inaugural PBSA project in Edgbaston which will enable us to showcase our unique take on high-quality accommodation to students in Birmingham in time for the 26/27 academic year. It was a pleasure working with Simon and the Paragon team and we are looking forward to working alongside them in bringing this project to fruition.”
Simon Dekker, Senior Relationship Director at Paragon Bank added: “It’s been a pleasure to work with Samuel and the Mercia Real Estate team on this exciting new scheme in Birmingham. We’re seeing more and more demand for high-quality student accommodation and were delighted to have supported funding for this project”
