The 18-month loan has a GDV of £17.5m.

The site was formerly a Hilton Hotel that ceased trading in 2020, meaning only minimal work is necessary to convert it into student accommodation.

Upon completion, the scheme will offer 105 rooms and communal space.

The development will provide student cycle stores and bicycle racks to encourage environmentally friendly travel, and is expected to create jobs in the local area.

The developer will also be making a contribution to local healthcare provision, benefitting the wider community.

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David Diemer, investment director at Blackfinch Property, said: “Having originally worked with the borrower [Optimal] to refinance their original purchase of this site late last year, we were delighted to be able to conclude this development loan to ensure the conversion of the property to provide much-needed student accommodation.

“The focus and professionalism of the borrower’s team enabled us to work towards the tight timescale, and we share their vision for this exciting project.”

Tom O’Brien, partner at brokerage Portway Finance, added: “The whole lending team worked with the borrower and ourselves throughout to make sure everyone was on the same page and up to date on any progress, which made the whole process very smooth.”