A Liverpool-based developer has secured a £56.5m green loan from HSBC it says will help expand its rental portfolio.
Downing says the sustainable funding package will allow it to retain the 24-storey Holbrook building in West London as an investment asset, adding it to the group's emerging portfolio of rental student accommodation.
The Green Term Loan to Holbrook follows the EMEA and Asia-Pacific Loan Market Association’s Green Loan Principles published in March 2018, encouraging environmentally friendly economic activity.
HSBC UK said its sustainable finance offering helps businesses meet their environmental goals.
Simon Garnett, finance director of Downing, said: “Downing is undergoing a sustained period of growth, building on our market-leading portfolio, outstanding reputation and strong presence across the UK’s leading cities. HSBC UK’s support will enable the business to continue to move forward and expand our portfolio of outstanding, environmentally sustainable developments.”
The Holbrook development in Acton, West London, completed in September 2019, and has 497 beds across a mixture of shared flats, studio apartments and affordable rooms.
The property achieved full occupancy ahead of opening with the majority of the scheme direct let and the affordable allocation leased to Imperial College London.
Downing will now hold the scheme, while continuing with other purpose-built student accommodation developments in London, Manchester and other major UK cities.
Kevin Dawson, relationship director for housing, corporate real estate at HSBC UK, said: “We have a long relationship with Downing, having provided development funding in the past, so we’re delighted to support the business realise its ambitions.
"The Holbrook site will make a fine addition to the group’s growing portfolio. We look forward to backing Downing as it continues to scale up its presence across the UK.”
Downing has over 30 years’ experience in the sector and has developed over 30 student accommodation schemes across the UK with a joint gross development value of £1.5bn.
