The finance agreement is the second to be completed in several months between Octopus Real Estate and property developer Bricks Capital. It follows a £21m agreement to deliver a 315-bed student scheme in Glasgow in October.
The loan highlights Octopus Real Estate’s continued focus on the student accommodation market, having funded more than £175m deals in the sector within the last year.
Bricks Capital currently has five student accommodation developments under construction, and already has a presence in Newcastle, operating under its True Student brand.
Gavin Eustace, head of development at Octopus Real Estate, said: “We’re always on the lookout for opportunities in this sector, and this latest deal with Bricks is another quality student development that will help support students in their academic performance and enhance their university experience. Cities such as Birmingham, with several academic institutions and a large student population, provide a great opportunity for developers.”
The Birmingham site is scheduled to be complete and open to students at the start of the 2020 academic year.