Moorfield Group has entered into a development agreement with Melberry for a £42m GDV purpose-built student accommodation (PBSA) scheme, which will deliver 293 beds in Lincoln and follows completion of their first project in July 2023.

The scheme, funded by Moorfield and set to complete in 2024, will include townhouses and cluster flats across almost 90,000 sq ft and seven buildings ranging from one to four storeys, as well as landscaped gardens.

Charles Ferguson-Davie, Chief Investment Officer at Moorfield Group, said: “We have been investing in student housing for over twenty years and investor confidence in the sector remains resilient, with domestic and international investors keen to increase their exposure to an undersupplied asset class offering risk-adjusted returns and long-term income streams.

“We see a market opportunity in new-build development and refurbishment of existing stock, with both strategies responding to investor demand for high-quality assets with leading ESG credentials.”

Delivered by contractor Bowmer + Kirkland on a turn-key arrangement, the fully electrified scheme will include air sourced heat pumps, representing a 60% energy consumption reduction compared to traditional gas heating, and elements of off-site construction.