Maven purchases Glasgow site for student accommodation development
Glasgow-based investors Maven Capital Partners has announced the purchase of a prominent office building in Glasgow city centre for redevelopment as student accommodation.
The acquisition and development of Mitchell House on Bath Street, next to the Kings Theatre, will see the empty office building extensively refurbished to provide studio accommodation for students over six floors with generous common space on the ground floor.
The development of Mitchell House marks Maven’s second venture in the student accommodation sector within the city. In late 2013, Maven raised £6.8 million to fund the purchase and conversion of Claremont House in Glasgow into a new 94 bed student residence.
The underlying appetite for higher education coupled with a structurally under-supplied market led to interest from potential buyers for Claremont House, which has now been sold to a specialist European property fund for £8.37m.
In conjunction with project managers Calmont Group, the Mitchell House development will provide accommodation for 70 students.
Well-located for Glasgow’s main universities and benefits from being close to excellent transport links, Mitchell House is also one block from Sauchiehall Street, which is regarded as the main centre for student nightlife in Glasgow.
The projected development costs are approximately £5.5m and the works are scheduled to be finished in time for the 2015/16 academic year.
As one of the most under-supplied purpose-built student accommodation markets in the UK, with occupational demand on a firm upward trajectory and an increasing number of overseas students coming to the city to study, Glasgow’s student accommodation sector is producing positive rental growth and has demonstrated its resilience throughout the economic downturn.
Ramsay Duff of Maven Capital Partners said: “We are very pleased to be working alongside Calmont Group on this exciting project. There is still a shortfall of good quality purpose built student accommodation in the city and this development will help to satisfy that demand.”
Mr Duff added: “The student accommodation sector continues to provide good returns for investors, given the continued strong demand from occupiers and institutional purchasers. This is particularly the case in markets that are under-supplied with purpose built student accommodation such as Glasgow and we were therefore delighted to have secured such a high quality and well-located development as Claremont House for Maven investors. The development opened on time, is now well-let and the sale has provided attractive returns for our investors within a short investment period.”