IP Investment Management (IPIM) and Maven Capital Partners (Maven) acquired a student accommodation development site in Dundee.
IPIM, with Maven acting as the asset manager, purchased the 1,500m2 site in early August 2023 and will be demolishing a former petrol station and redeveloping the space into a brand new, c. €35m purpose-built student accommodation (PBSA) scheme.
The site has planning consent for a seven-storey, 189-studio bed project that will feature modern amenities including a ground floor student hub, gym, cinema room, dining room, and a landscaped external courtyard all built to high-end specifications and fitouts. Construction is planned to start in 2024 and is anticipated to complete by 2026. The PBSA scheme is intended to be built to “Very Good” BREAAM certification.
The development site is centrally located with frontage on Marketgait, a main artery that is just minutes walking distance away from Dundee city centre, University of Dundee, Abertay University, Dundee Rail station, Hampton by Hilton, Lidl grocery store, and neighbouring student accommodation.
Paul Johnston, Partner at Maven, said: "Despite the macroeconomic environment, which is presenting some challenges to certain property sub sectors, UK PBSA continues to remain resilient, particularly where there are significant supply shortages such as that in Dundee. Coupled with rising student numbers and a falling provision of HMOs from private landlords due to increased regulation and tax changes, stock is being stretched and there remains attractive investment opportunities for quality projects. Our latest PBSA development, in collaboration with IPIM, will deliver stylish student living in the heart of the city centre, close to a number of amenities and within walking distance to the University of Dundee and Abertay University campuses. We believe it will prove popular with both UK and international students.”
Selina Williams, Executive Director at IPIM, added: “We are delighted to have acquired Marketgait Dundee as the seed deal for our first UK PBSA-focused multi-asset fund. IPIM UK Student Living LP seeks to deploy c. £40m of investor equity to develop or reposition / refurbish student assets across the UK. While there are some macroeconomic uncertainties ahead, we believe that the current point in the cycle presents a unique opportunity for investment. Higher interest rates and inflation continue to curb future UK PBSA development pipeline on the back of higher demand, exacerbating the bed shortfall. We believe that investing now, ahead of the rebound will be very lucrative for our fund once capital market conditions improve.”
Image provided by Lawrence PR.
