CapitalRise Completes £12.5m in Loans for Two Student Accommodation Projects in the South West

Specialist lender, CapitalRise, has recently closed two significant transactions in the South West, funding student accommodation projects in Bristol and Bath with a combined loan value of £12.5 million. These deals reflect CapitalRise’s ability to support experienced developers with compelling projects in strong locations. They also mark CapitalRise’s first venture into the purpose-built student accommodation (PBSA) sector – an exciting new asset class for the lender.

Both loans were originated by Lee Francis, Head of Origination at CapitalRise (above) and were introduced by Daniel O’Neil, Executive Director at SPF Private Clients (below), a long-standing partner of CapitalRise.

The first transaction completed was a bridging loan in Clifton, Bristol that was structured to refinance existing debt and provide a period of stabilisation. This loan will allow the borrower to complete lettings and create a consistent flow of rental income on the PBSA scheme. The property benefits from excellent connectivity to both the University of Bristol and the city centre.

The second loan also supports a PBSA scheme – this time in Bath, located on the well-connected Lower Bristol Road. Planning permission has been granted for the conversion of an existing office building into student accommodation, including a mix of cluster flats, studio units, and communal amenity space. The borrower intends to deliver 35 student bedrooms and three studio flats.

The borrower behind both of these projects, Rengen Developments, is a highly reputable developer with extensive experience in the PBSA sector. Rengen was founded by Iestyn Lewis following a successful career in professional rugby. Since 2006, the firm has been buying, building and operating PBSA assets, principally in Bristol and Bath – but also in other prominent towns and cities such as Bournemouth, Newcastle and London. They currently own around 50 buildings with 3,000 beds under management – in addition to PRS, co-living and commercial property.

With both Bath and Bristol universities ranked among the UK’s top institutions, these projects are well-positioned to meet strong demand for high-quality student housing in the cities.

Lee Francis, Head of Origination at CapitalRise, commented:
“I have been building a strong relationship with the team at Rengen over the past two years, and these transactions reflect our commitment to relationship-led lending. Both projects are in prime university locations and align perfectly with our strategy of supporting experienced developers with best-in-class projects.”

While residential developments in Prime Central London and the Home Counties remain core areas of specialism for CapitalRise, we’re excited to expand into new regions and asset classes where we see strong fundamentals.”

Daniel O’Neil, Commercial Finance Adviser at SPF Private Clients, added:
“Working with a specialist lender like CapitalRise is always a pleasure. Their deep understanding of property and ability to respond commercially and flexibly make them an ideal partner for complex transactions. At SPF, we pride ourselves on delivering tailored finance solutions for our clients, and CapitalRise’s approach aligns perfectly with that ethos. We look forward to continuing our collaboration.”

Iestyn Lewis, Founder of Rengen Developments, commented:
“CapitalRise and SPF have been fantastic partners throughout this process. Their ability to understand the nuances of PBSA and respond flexibly gave us confidence from day one. These projects are an important part of our growth strategy, and having lenders who share our vision and deliver on their promises makes all the difference.”

These transactions highlight CapitalRise’s ability to diversify into new sectors while remaining focused on high-quality projects and experienced borrowers. With an average LTV of just under 70%, the loans reflect the lender’s appetite for well-structured opportunities with experienced borrowers in strong locations.

This story was also covered in Development Finance Today, December 2025.