The Singapore-based private equity real estate fund management firm has announced a £19 million investment into 255 purpose-built bedrooms on Gorgie Road in Edinburgh, within three miles of the city centre. This is IPIM’s second push this year into the student accommodation market following the acquisition in March of a site in Selly Oak in Birmingham which will provide 100 studios when completed in September 2016.
There are an estimated 34,000 students in Edinburgh who do not have access to university halls of residence or purpose-built accommodation. The site will add 92,000 sq ft to accommodate the city’s growing student population in a mix of cluster flats and studios set to be completed in 2017 ahead of the new academic year.
IPIM are working alongside Maven Capital Partners (Maven), who will provide asset management services for the delivery of the scheme. This is the second transaction with Maven following the acquisition of the Birmingham site earlier this year.
Since 2011, the principals of IPIM have been responsible for the development of UK student accommodation. In 2014, the company sold three buildings in London, Oxford and Cardiff with a GDV of £46 million to LaSalle Investment Management.
Peter Young, Director at IPIM, said: “We are committed to building a robust portfolio of student accommodation assets across the UK and we see Edinburgh as a crucial part of this. More than 70% of Edinburgh’s full-time students are unable to live in student halls or purpose-built housing, creating an evident need for well-located and high quality accommodation.
Our new site is in an excellent location, en route to the city centre from Heriot-Watt University Campus at Riccarton and Edinburgh Napier University’s Sighthill, Craiglockhart and Merchiston Campuses, offering convenient housing options that are truly needed by the city’s students.
We see the student accommodation sector as a highly attractive asset class and are committed to working with developers in this sector. We will continue to actively pursue a pipeline of similar deals in the coming months.”
Andrew Whiteley, Investment Director at Maven Capital Partners, said: “The Gorgie Road property will be an excellent addition to the Edinburgh student accommodation market, which remains substantially undersupplied. We are looking forward to getting on site early in the New Year and to delivering another high quality asset to IPIM well ahead of the start of the 2017/18 academic year.”
