Specialist property lender Octopus Property is financing the development of a 225-unit student housing scheme in the southwest of England.

Octopus Property said it has agreed to provide Atlas Land with a £16m (€18m) loan to develop the purpose-built student accommodation scheme, together with three commercial units, in Bristol City Centre.

Studio Hive has been appointed to manage the build-out of the scheme, which is expected to be completed in time for the 2020 academic year.

Gavin Eustace, the head of residential development at Octopus Property, said: “The purpose-built student accommodation sector remains one of the most attractive asset classes for investors due its defensive characteristics, whilst the Bristol market, with its above-average supply-demand imbalance and strong academic tradition, is a particularly compelling market in which to provide development finance.

“With a highly regarded development manager and experienced main contractor in place, we look forward to building a lasting relationship with Atlas Land for the duration of this project and into the future.”

The 25-month loan is the tenth PBSA transaction for Octopus Property, following last year’s Leicester and Ealing schemes.

Alan Chaytor, a managing director at Atlas Land, said: “This has been a significant investment by Atlas Land in a prime regional centre with a strong university base. I am delighted to be working with Octopus property and Studio Hive in delivering a quality PBSA scheme and helping to regenerate a derelict site into a desirable student scheme.”