Published: May 26, 2023
Maven and Glenmore Group, a London based property investment firm, have started work on a new student development in Dundee. The development site, which was formerly the location of a hessian fabric factory, is located between Douglas Street and Brown Street in the heart of the city centre and has been vacant for several years. Full planning permission has been granted for 152 new PBSA studios, plus amenity spaces. As construction started in May 2023, the property will be completed ahead of the 2024/25 academic year.
The £19 million development has been funded by Glenmore, alongside a bank facility from Puma Property Finance. Maven will act as asset manager on the project, which will be constructed by Aberdeen based CHAP Group.
Dundee has one of the highest ratios of student population in the UK, with over 17,000 full time students, and this number has increased 22% over the last five years. This has resulted in a significant undersupply of good quality purpose-built accommodation in the city. The development is situated in a prime location, less than ten minutes’ walk to both the University of Dundee and Abertay University campuses, offering an excellent future addition to Dundee’s student accommodation provision.
The completed property will comprise of all studios, each providing all the amenities required for fully self-contained and private living, while the common areas will offer a high standard of amenities, including common room, gym, cinema room, dining room and laundry. The top floor will include a partly covered roof top terrace, a unique feature in Dundee.
Maven has extensive experience in the PBSA sector which it has developed, asset managed and operated a number of properties across many of the UK’s university cities, including Glasgow, Edinburgh, Durham, Liverpool and Birmingham. One such project was the development of the Marketgait Apartments in Dundee, which Maven redeveloped in 2015 and was subsequently sold in its second year of operation at 100% occupancy, providing a return for Maven investors of 2.37x MoM.
“The PBSA sector has a history of low volatility and, despite wider macro-economic issues, such as the cost of living, we are continuing to see strong appetite from both domestic and international students to continue their education in Dundee and to be able to access high quality accommodation which meets the expectations and needs of today’s students.
Dundee is a vibrant international city, which has undergone a transformative regeneration in recent years, including the £1 billion Waterfront Project. Coupled with our experience at Marketgait in Dundee, as well as the many other PBSA development we have worked on throughout the UK, we are excited to be delivering a high quality, stylish studio product that is in particularly short supply."
Paul Johnston, Partner at Maven
"We’re absolutely delighted to be working with Maven and Chap Group to deliver what will be a best in class and much needed new PBSA scheme in Dundee."
Andrew Whiteley, from Glenmore Student Property