Administrators look to sell 244-bed Preston PBSA

Friargate Court is up for grabs after landlord Innovation Court collapsed last year owing more than £10m to the bank that funded the acquisition of the scheme in 2023.

Administrator FRP Advisory has appointed Knight Frank to market the 244-bed student scheme, located off Market Street West between Preston city centre and the University of Lancashire campus. Offers of £9.75m are being sought.

An administrators report published earlier this year laid out the circumstances surrounding the collapse of the scheme’s previous owner Innovation Control, headed up by Anthony Jackson, the chairman of Portergate Property Holdings, who died in 2025.

“Significant market challenges” including declining rents and a slowdown in the number of domestic and international students attending university were cited among the factors contributing to the company’s appointment of administrators in 2025.

The business’s main creditor is Cambridge and Counties Bank, which is owned £10.3m. The bank funded the acquisition of Friargate Court in 2023. The scheme has been operational since 2016.

Knight Frank said the there is a lack of supply of PBSA beds in Preston and that student numbers are increasing.

Toby Thomas, associate in the student property team at Knight Frank, said: “Friargate Court offers a rare opportunity to acquire a well-located, operational PBSA asset at an attractive price point, in a market where supply still doesn’t meet demand.

“The scheme is experiencing strong letting momentum as it approaches the next academic year, and there is a clear opportunity for investors to drive leasing performance and grow income through hands-on asset management. The scheme can also accommodate key workers and apprentices which further enhances its appeal and offers income diversity.”