Puma Property Finance has provided an £11m follow-on loan to Glenmore Group to fund the development of an additional 98 purpose-built student accommodation (PBSA) beds in Dundee.
The development facility will support a phase two extension to the existing 152-bed scheme, which was funded by Puma in 2023.
The accommodation will be built adjacent to the existing Brown Street scheme, which includes amenities such as a cinema room, roof garden and gym.
The phase one and two developments are expected to reach practical completion in summer 2024 and 2025 in time for the start of the academic year.
Eliot Kaye, managing director at Puma Property Finance, said: “We are pleased to be working with our trusted partner, Glenmore, for the fourth time on the phase two extension of this scheme. With growing numbers of UCAS applications, demand for high-quality student accommodation is only increasing across the UK, particularly in Dundee which has been historically undersupplied.
“The sector also continues to deliver attractive returns, with rental growth projected to hit between 4% and 6% this year. We have strong experience in the PBSA sector, having delivered over 3000 student beds to date, and this development represents our sustained commitment to supporting essential social infrastructure across the UK.”
Andrew Whiteley, from Glenmore Group, added: “We are delighted to be working with Puma once again to deliver phase two of our PBSA development in Dundee, which is home to two excellent universities with fast growing reputations. We have appointed CRM Student to manage what will be the market leading student property in Dundee, offering fantastic studios and leisure facilities in a very convenient location. We are excited to welcome our first student intake to phase one this summer and phase two next.”
