The former Hilton Hotel Aberdeen is set to undergo a major transformation into student accommodation following a £9.7m development loan.

Blackfinch Property, a lender specialising in residential and commercial real estate, will provide the financing for the project. The loan's duration will be 18 months.

The chosen site for the student accommodation project was formerly a Hilton Hotel that ceased operations in early 2020. Minimal renovations are necessary to repurpose the property for student living.

This efficient conversion process ensures that the accommodation will be ready in time to welcome students for the start of the September 2023 academic year.

Enhanced student living environment and community impact

Once completed, the development will offer a total of 105 rooms alongside communal spaces that aim to foster a sense of community among the students.

All its rooms will exceed the size of the typical studio rooms found in purpose-built student accommodation schemes, providing enhanced living spaces for residents.

Blackfinch Property's commitment to environmental, social, and governance principles is also reflected in the development plan. The student accommodation complex will feature student cycle stores and bicycle racks, promoting eco-friendly travel options.

The project will also have a broader positive social impact on the local area, generating employment opportunities within the community and contributing to local healthcare provision.

Positive response from Blackfinch Property

David Diemer, investment director at Blackfinch Property, expressed his satisfaction with the project, stating, "We are delighted to support this exciting project and provide the necessary financing for the conversion of the former Aberdeen hotel into much-needed student accommodation.

The borrower's team demonstrated focus and professionalism, enabling us to work within a tight deadline to ensure the rooms are ready for the new academic year. We share their vision and look forward to the successful completion of this venture."

Tom O'Brien, former commercial and development finance broker at Enness Global and now a partner at Portway Finance, praised the collaboration with Blackfinch Property, highlighting the smooth and transparent lending process.

The coordination between the borrower, lending team and stakeholders ensured a cohesive approach and kept everyone well-informed throughout the project.