UK: Crucible Developments has secured a £4.1 million development loan from Bank of Scotland to complete a 55-room student accommodation project in Dundee.
Crucible Developments has been operating from its base in Ayr since 2010, working on commercial and residential projects across Scotland and the North of England.
In 2022, the business bought a 75,000 square foot plot on the corner of Dundee’s Nethergate and West Marketgait. Due to the lack of student housing in the city, the it decided to use 700 square metres of the space to build private student accommodation.
Crucible Developments was able to fund the initial £3 million to begin the project, and now an additional £4.1 million development loan has been secured through Bank of Scotland to help complete the construction. Work is due to be complete by December 2023.
The plot is located close to University of Dundee and Abertay University and will offer 55 studio-style en-suite rooms for students, as well as bike storage, communal kitchen facilities and two retail units.
Brian Robinson, director at Crucible Developments said: “The student housing shortage in Dundee has reached a critical point and we are very pleased to be able to play a part in solving this issue. When students left their accommodation during the Covid-19 pandemic, many landlords who would normally rent to students turned to longer-term letting, leaving a housing shortage when students returned to the city.
“We pride ourselves on developing first-class projects and this is no different. Working with Bank of Scotland has enabled us to ensure that we can continue on this trajectory and bring housing to those who need it as quickly as possible,” he added.
Grant Fraser, relationship director at Bank of Scotland said: “Dundee has reached an unprecedented student housing demand, with rental room prices soaring 33% within the last year[1]. This is an issue that needs urgent attention, so we are proud to be supporting Crucible Developments in their latest project that will bring much needed relief to a strained housing system. The rooms will offer a first-class option for students and will drive footfall in the area. We’re looking forward to hopefully continuing to support the business as it grows its portfolio across Scotland.”
Last month developer Glenmore secured funding from Puma Property Finance for a separate PBSA scheme in Dundee.
