IP Investment Management (IPIM) and Maven Capital Partners have acquired a purpose-built student accommodation (PBSA) development site in Dundee.
The circa 1,500 sq m former petrol station site is centrally located with a frontage on Marketgait. Maven is acting as asset manager on the circa £30m GDV development, which offers 189-studio beds in a seven-storey building.
On-site amenities include a ground floor student hub, cinema room, dining room and a landscaped external courtyard. Construction is due to start on site next year and is expected to complete by 2026.
Paul Johnston, partner at Maven Capital Partners, 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 circa £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.”
