UK: IQ Student Accommodation has paid £9.3 million for an office building in Glasgow which will be demolished and replaced with a 527-unit PBSA scheme.
The sale agreement between IQ and vendor AEW UK REIT plc (AEWU) required AEWU to negotiate with tenants to bring the asset to vacancy.
“As the culmination of a long running business plan, we are delighted to see this sale complete. The disposal not only maximises the value of the asset but will increase occupancy levels across the remaining portfolio, reduce running costs and boost earnings, once capital is reinvested. The proceeds from the sale are already under offer to assets in exclusivity and, as such, we expect to make further purchase announcements in the coming weeks,” said Laura Elkin, portfolio manager at AEW UK REIT plc.
