Blackfinch Property, a lender to the residential and commercial real estate sectors, has completed a £9.7m development loan facility to convert a former hotel into student accommodation.

The Hilton Hotel in Aberdeen ceased trading in early 2020. As such, only minimal work is necessary to achieve the conversion to student accommodation.

On completion, the scheme will offer 105 rooms, and associated communal space to bring students together. All rooms will be larger than the typical studio rooms available in purpose-built student accommodation schemes.

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.”