Newcastle-Under-Lyme’s Deakins Yard, formerly known as Sky Building, is set to be transformed into high-spec student accommodation by North West-based ethical property developer Integritas Property Group (IPG) thanks to over £11m of funding from Brydg.
The funding from Brydg, which offers the most advanced real estate lending experience available for institutional investors and loan originators, will fund the initial work of the new Deakin’s Yard project.
The Deakins Yard development is now being managed by IPG, which has experience of similar projects across the North West. The development is named after prominent former resident Fanny Deakin, the notable politician from Newcastle-under-Lyme, will meet the ever-increasing demand for student accommodation in the Keele and Newcastle-under-Lyme areas.
Deakins Yard at 22 Brunswick Street, ST5 1HH, is in close proximity to Keele University, the largest campus university in the UK, with over 10,000 students, as well as Staffordshire University, which hosts a further 19,190 students. It is also close to Royal Stoke University Hospital, which has over 6,000 staff, including medical students in training.
Mitchell Walsh, CEO of Integritas Property Group, says, “IPG is committed to seeing this project through. We understand that the site has been unsightly for a while, and we believe that transforming it into something that will greatly benefit the student population of Newcastle-under-Lyme and bring investment opportunities to the area will improve the prospects in the region.”
IPG has a good track record in the student property development market with its successful Bijou project and the recently launched Optima site in Bradford. These developments are revolutionising the student accommodation landscape in the city and are reporting high rental yields for property investors.
The Deakins Yard development will be made up of 273 units – 122 studios with ensuites, 127 large studios with ensuites and kitchens, 10 one-bedroom apartments and 14 accessible rooms, and will offer a great opportunity to investors.
Jack Hodgkin, from Brydg, said, “Given the past difficulties with the project, Brydg sees the potential in the Deakin’s Yard site and what it can offer to the surrounding student landscape. This, however, requires an experienced developer with the expertise and understanding to execute such a project. We believe IPG, led by Mitchell Walsh, tick these boxes and are proud to be able to offer the funding required to take the project to completion.”
Construction is expected to start in December 2023, with expected first phase completion in Q3 2024. Each unit will be sold with a 999-year lease, priced from £75,000 – £106,000, with an anticipated 8.25% rental yield for year 1.
