Firethorn Trust has secured a £29.95m debt package from Leumi UK to deliver its first purpose-built student accommodation (PBSA) scheme.
The financing will support the delivery of a 230-bedroom PBSA project in Leith, Edinburgh, which Firethorn acquired in February 2024.
Forming part of the Leith Walk redevelopment scheme, the site has planning permission to deliver a six-storey building featuring high-quality accommodation and generous amenities, including a fully-equipped gym, modern study spaces and student common rooms.
“The Leith Walk project required a partner that could provide a tailored financing solution to meet our bespoke needs, which is precisely what Leumi delivered.
“We are delighted to be working with Leumi on this development and are excited about the potential for collaboration on future projects as we grow our Firethorn Living platform.
“With our established track record in developing high-quality assets and generating strong returns, we are confident that this development will play a key role in addressing the critical need for modern student housing in Edinburgh’s vibrant university district.”
Richard Whitby, Chief Financial Officer, Firethorn Trust
Edinburgh’s PBSA market is materially undersupplied, with a student-to-bed ratio of 3.13:1 and a limited development pipeline.
The Leith Walk development will help to address demand by creating much-needed bed spaces, while a modern and sustainable design specification will contribute towards BREEAM Excellent and EPC A ratings. The scheme is expected to be completed in time for the 2026/27 academic year.
“In many ways, this transaction epitomises what sets Leumi UK apart, as we were able to complete this transaction with great focus on ensuring the lending solution met the specific needs of the sponsor. Firethorn Trust has a strong track record of creating attractive and sustainable spaces, and we look forward to expanding our relationship as it grows its Living platform.”
Dan Whiteman, Relationship Director, Leumi UK
Firethorn Trust was advised by Brotherton, BCLP and CMS on this transaction. Leumi UK was advised by Osborne Clarke and MFMac.
