UK Student Accommodation in Dundee Gets a Boost with £30m Redevelopment

IP Investment Management (IPIM) and Maven Capital Partners have set their sights on improving the availability of student accommodation in Dundee. In a strategic move, they recently acquired a 1,500 sq m site on Marketgait in Dundee, with plans to transform it into the latest student housing. According to the UK student news, the former petrol station at this location will make way for a new purpose-built student accommodation scheme.

As stated by Global Village Space, this Dundee student housing project has already received planning consent for a seven-storey building that will feature 189 studio buildings. In addition to comfortable living spaces, the facility will include a ground floor hub, gym, cinema room, dining room, and a beautifully landscaped external courtyard. With an estimated cost of £30 million, construction is scheduled to commence next year, with completion expected by 2026. 

According to the UK student news, IPIM and Maven have a proven track record of successfully developing and managing student accommodation properties across the UK. This acquisition adds to their impressive portfolio, which already includes eight properties with over 1,366 beds. Together, they have developed a total of 23 purpose-built student accommodation assets, comprising 3,688 beds and valued at around £446 million, contributing significantly to the student housing market.

Dundee, with its growing student population, has faced a shortage of modern student housing since 2015. According to research by Savills, the city has a student population of over 17,000 but only approximately 3,900 existing student beds. This undersupply, coupled with increasing student numbers and a decrease in Houses in Multiple Occupation (HMOs) provided by private landlords due to regulatory changes. This has created an attractive investment opportunity for high-quality student accommodation projects.

According to Insider, Paul Johnston, a partner at Maven, said, “Despite the macroeconomic environment, which is presenting some challenges to certain property sub sectors, UK student accommodation continues to remain resilient, particularly where there are significant supply shortages such as that in Dundee.”

Selina Williams, Executive Director at IPIM, states, “Higher interest rates and inflation continue to curb future UK student accommodation 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.”

Thus, according to the UK student news, this strategic acquisition by IPIM and Maven Capital Partners represents a significant step in addressing the undersupply of student accommodation in Dundee. With the project set to commence in 2024, it aims to provide comfortable and convenient housing for students attending the University of Dundee and Abertay University, enhancing the overall student experience in the city.

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