Published: Jun 29, 2020
Focus:
Property
Maven and IP Investment Management (IPIM), a Hong Kong-based boutique real estate investment manager, have continued their penetration into the UK student housing sector with the acquisition of Centro House, a student accommodation property in Stirling.
IPIM, with Maven acting as the asset manager, have purchased the property for £9 million and will look to add significant value through active management, capitalising on both IPIM and Maven’s extensive experience in the PBSA sector where the principals have previously collectively developed, asset managed and operated 16 properties across the UK, totalling over 2,800 beds. Centro House is their eighth jointly managed PBSA scheme.
Centro House, a former office building located in the heart of Stirling’s historic city centre, was originally constructed in the mid-1990s and recently underwent a full refurbishment ahead of the 2018/19 academic year.
Centro House extends to approximately 42,000 sq. ft over three floors and comprises of 122 student beds, consisting of 61 cluster bedrooms, 59 studios and 2 one-bedroom flats. The property also includes flexible communal space, a laundry room, cycle store, reception area and car parking, with 16 allocated spaces.
Stirling is one of the most undersupplied markets in the UK for PBSA, with around 3,000 beds against a student population of approximately 14,000. Maven, on behalf of its clients, is now a dominant private PBSA owner in Stirling, having recently completed the development of Riverside Quay with IPIM, providing 209 bedrooms, and currently developing Carters Yard, which will provide a further 159 bedrooms and is due to open later in 2020.
"The PBSA sector has a history of low volatility and, despite the wider macro-economic issues which have resulted from the COVID-19 crisis, we are continuing to see strong student sentiment to continue their education with applications to UK universities and colleges remaining strong. We are confident that any uncertainties around academic start dates will only have a short-term impact while markets normalise and once global travel restrictions lift, we will once again see the UK as one of the world’s most popular destinations for overseas students.
There is a recognised shortage of accommodation in Stirling aimed at 2nd, 3rd, 4th year and post-graduate students, many of whom rely on HMO accommodation both in Stirling and surrounding towns. Centro House is an excellent addition to our growing portfolio and will offer its occupants stylish student living, close to a number of amenities and with excellent transport links to the University of Stirling campus.”
Paul Johnston, Partner at Maven
“We are delighted to be working once again with Maven and this investment demonstrates our commitment to the UK PBSA market. The sector is proving its resilience and as an asset class it continues to be an attractive pull for our investors due to its defensive nature. Centro House marks our second value add asset and our first university managed property. We are confident that the property will perform well given the high occupancy rates since opening coupled with the acute shortage of student accommodation in Stirling.”
Selina Williams, Executive Director at IPIM
