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A £32.5 million funding package from Paragon Bank’s Development Finance division is set to support the first phase of Mercia Real Estate’s 411-bed Purpose Built Student Accommodation (PBSA) project in Edgbaston. The funding will refinance an existing land loan on two commercial units at the site and facilitate the conversion of the first unit into student accommodation.
Located at 12 Calthorpe Road, the office complex, previously used by HSBC, will see one unit transformed into a 266-bedroom student facility, with the other unit proposed for 145 additional bedrooms, currently under planning review.
Construction on the first phase has begun, with completion expected by September 2026, allowing students to move in for the 2026/2027 academic year.
The funding arrangement was led by Paragon Bank’s Senior Relationship Director Simon Dekker and Portfolio Manager Izzy Sargeant. Since the launch of Paragon Development Finance’s PBSA initiative, the bank has lent £216 million across various UK cities, funding 3,362 rooms in total.
Mercia Real Estate’s CEO, Samuel Clark, expressed enthusiasm for launching their student brand in Edgbaston and working with Paragon on the project. Simon Dekker added that the demand for high-quality student accommodation is growing, and Paragon is pleased to support the project’s development.
