New £68.7m funding deal agreed for Birmingham student flats

A huge student accommodation project due for completion in Birmingham next year has been boosted by a new funding deal.

LaSalle Investment Management has agreed a £68.7 million loan deal with developer and operator Vita Group for its project in Gough Street near the city's landmark Mailbox scheme.

The building will house 540 beds and be run by the Cheshire-based group once completed.

It will cover 105,000 sq ft across two blocks of ten and 29 storeys and contain private dining rooms, a hub for socialising and study, a gym, outdoor basketball court and terraces.

Construction work started in 2023 and it is due to be ready to welcome students ahead of the 2026/27 academic year.

It will add to the firm's other student project in the city at the former home of BBC Pebble Mill studios in Edgbaston.

Vita Group is also behind the regeneration of the old Axis Square site, in Holliday Street, where it plans to build 'Goods Station', a residential-led, mixed-use scheme across four acres of derelict land.

Chief operating officer Max Bielby said: "We're delighted to be working with trusted partner LaSalle to deliver this best-in-class student accommodation to the heart of Birmingham.

"The delivery of this building is well under way and will raise the standards of what students should and can expect from their accommodation experience in the city centre.

"We look forward to welcoming students from September 2026."

David White, head of LaSalle real estate debt strategies, added: "This latest development loan completed by our debt investments platform maintains our strong pace of deployment, positioning our business as one of the most active real estate debt providers in Europe.