UK: Real estate investment manager IP Investment Management (IPIM) and property and private equity firm Maven Capital Partners have jointly acquired a development site in Dundee for a £30 million PBSA scheme.
IPIM, with Maven acting as the asset manager, purchased the 1,500 square metre site in early August 2023. It plans to demolish a former petrol station and redevelop the site into a seven-storey, 189-studio project. Amenities will include a ground floor student hub, gym, cinema room, dining room, and a landscaped external courtyard.
Construction is planned to start in 2024 with completion by 2026. The scheme is intended to be built to “Very Good” BREAAM certification.
The development is centrally located with frontage on Marketgait, walking distance from Dundee city centre, University of Dundee, Abertay University, Dundee Rail station, Hampton by Hilton, Lidl grocery store, and neighbouring student accommodation.
The partnership will leverage both IPIM and Maven’s extensive experience in the PBSA sector where the pair has jointly developed, asset managed, and operated eight properties across the UK totalling more than 1,300 beds to date. On a cumulative basis, IPIM and Maven have developed 23 PBSA assets totalling 3,688 beds worth approximately £446 million across the UK.
Maven has experience in the Dundee market as the company acquired, redeveloped, and sold Marketgait Apartments, a 116-studio PBSA scheme in 2018. It is currently overseeing the development of Hessian, a 152-bed PBSA project on Brown Street in the city centre.
Paul Johnston, partner at Maven, said: “Despite the macroeconomic environment, which is presenting some challenges to certain property sub sectors, UK PBSA continues to remain resilient, particularly where there are significant supply shortages such as that in Dundee. Coupled with rising student numbers and a falling provision of HMOs from private landlords due to increased regulation and tax changes, stock is being stretched and there remains attractive investment opportunities for quality projects.
“Our latest PBSA development, in collaboration with IPIM, will deliver stylish student living in the heart of the city centre, close to a number of amenities and within walking distance to the University of Dundee and Abertay University campuses. We believe it will prove popular with both UK and international students,” he added.
Selina Williams, executive director at IPIM, said: “We are delighted to have acquired Marketgait Dundee as the seed deal for our first UK PBSA-focused multi-asset fund. IPIM UK Student Living LP seeks to deploy circa £40 million of investor equity to develop or reposition / refurbish student assets across the UK.”
