Leeds-based developer Priestley Homes has acquired an 89-bedroom development on Cable Street out of receivership for £6.5m.
Professional services firm Duff & Phelps was appointed to sell the city centre scheme, which was being developed by Lancaster Student and is 80% complete, to recover a charge on behalf of creditor Lancashire Mortgage Corporation.
Plans for the development comprise the conversion of the grade two-listed, three-storey building on the site, alongside a new-build five-storey accommodation block.
Priestley Homes, which is part of the wider Priestley Group, has appointed sister company Priestley Construction to finish the 20,000 sq ft new-build element, ready for the start of 2021/22 academic year.
The contractor will also undertake the conversion of the listed element – the ground and first floor of which will feature a common room.
The old and new elements of the development will be linked via a glass walkway and each of the 89 bedrooms will feature an en-suite bathroom.
In total, Priestley said it would invest around £2m to complete the project.
Nathan Priestley, chief executive officer of the Priestley Group, said: “Cable Street is our largest-value single acquisition to date and it is a great addition to our growing portfolio.
“The market is robust, and this is one of several high-value purchases we have secured during the coronavirus period, with no signs of slowing. We have our eye firmly on acquisitions in other key cities as we move into 2021, working with Priestley Construction to bring the developments to life.”