Maven sells Dundee student accommodation asset for £9.5 million
Sale of Marketgait Apartments generates a return in excess of 2x for Maven investors
Maven Property has sold Marketgait Apartments, a 116 bed purpose built student accommodation (PBSA) development in Dundee to 90 North Real Estate Partners. The asset has been sold for £9.5 million generating a return in excess of 2x for Maven Investor Partners in little over three years.
Maven purchased the property for £1.55 million in April 2015 and, following a comprehensive £5 million internal refurbishment, Marketgait Apartments opened in time for the start of the 2016/17 academic year. The property enjoyed 100% occupancy last year and is fully let again for the 2018/19 student year.
Marketgait Apartments provides high quality, state of the art stylish student accommodation with extensive communal spaces. Located in the heart of Dundee the property is within easy walking distance of the City’s two universities, The University of Dundee and Abertay University, making the property well suited to students studying at both institutions. The asset is perfectly located for access to the extensive Dundee waterfront area, which is undergoing a £1 billion redevelopment.
“Today’s sale is another excellent return for our investors and once again demonstrates Maven’s expertise in the UK PBSA sector. In conjunction with our operating partner, Collegiate AC, we saw the opportunity to create a high quality, stylish studio product that did not previously exist in the Dundee market, which is evidenced by the consistently high occupancy levels achieved to date.
By identifying the right assets and delivering what students want for an affordable rent, the PBSA sector continues to offer excellent opportunities for institutional and overseas investors. Scotland in particular continues to be a strong market for Maven where we have developed and recently exited from similar assets in Glasgow and Edinburgh. We are grateful to all the firms who supported us on the project and in particular The Royal Bank of Scotland, which provided the senior debt, main contractor Morris & Spottiswood, and Workman as project manager.”
Colin Anderson, Investment Director at Maven