Paragon Bank’s development finance division has provided a £30M loan to support the development of a 267-bed student scheme in Southwark, London.

The funding for Tribe Student Accommodation will result in a 10-to-12-storey development with 2,800 SF of retail and restaurant space on the ground floor level, Paragon said.

The development is on the site previously occupied by a KFC outlet, and work has already commenced. The scheme is expected to be complete for the 2024-2025 academic year.

There will be a mix of cluster rooms and studios, and the scheme will also provide communal lounges, a study space, a roof garden and a pocket park.

The funding scheme has used Paragon’s stabilisation facility, which provides an 18-month period post-completion of the development for the scheme to lease up, with student occupancy for up to two academic years.

Demand for student accommodation in the area is growing alongside the broader redevelopment of the Old Kent Road area, Paragon said. The Old Kent Road scheme will cater to students studying in higher education facilities in south London and across the capital.