Post by Merricks Capital

A live Purpose-Built Student Accommodation (PBSA) project in DD reflects a broader investment theme we have been tracking in our opportunity set: housing demand remains deep, but the scarcity value is increasingly in projects that can actually be delivered. With construction costs observed to have rebased ~10-15% higher from 12 months ago and contractor capacity still constrained, defensible feasibilities and ability to deliver underpin credit selection. In this environment, modular construction has a role in the credit opportunity set, particularly where repeatable design, proven sponsors and appropriate controls improve cost discipline and completion certainty. https://lnkd.in/gjJMkJ9a