Student housing provider UNITE Group has bought a £38m development project on St Leonard’s Street in the heart of Edinburgh.
The acquisition of the 1.8-acre development site is subject to planning and funding agreements. It is anticipated that the wholly-owned scheme will be completed in time for the 2016/17 academic year.
The scheme, which is subject to planning, is anticipated to be made up of shared flats with communal living and kitchen spaces, and self-contained studios, over five storeys.
The site is currently occupied by an 8,000 sq ft shop, which will be refurbished.
It is the third project to be funded from the proceeds of the group’s June 2013 share placing, following the acquisition of sites in Newcastle and Aberdeen earlier in 2014. Together, the three developments account for approximately 70% of the capital raised.
UNITE is also in exclusive negotiations to acquire a further site in a similarly strong regional location. When contractually secure, the project will account for the remainder of the June 2013 share placing proceeds.
Richard Simpson, managing director of property at UNITE, said: “There are 41,000 full-time students seeking accommodation in Edinburgh, with only 12,500 corporate and university bed spaces available. This structural shortage and the strong central location of this site mean the property is well located for University of Edinburgh students and will also appeal to students from other Edinburgh institutions such as Napier University, Herriot Watt University and Queen Margaret University. This development will add to our existing portfolio of five properties in Edinburgh, where we currently provide a home for 717 students.”
annabel.dixon@estatesgazette.com
