IP Investment Management and Maven Capital Partners have purchased a £30m GDV student accommodation development site in Dundee.
The site is located on a former petrol station and has planning permission to be redeveloped into a 189-bed, seven-storey PBSA scheme.
The PBSA will be operated by Maven and includes student hub, gym, cinema room and dining room.
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 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 attractive investment opportunities remain for quality projects.”
Selina Williams, executive director at IPIM, added: “IPIM UK Student Living seeks to deploy £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 the 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.”
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