Glasgow PBSA scheme secures £35.5m development finance

A former Glasgow office building is set to become a 288-bed purpose-built student accommodation (PBSA) scheme after Atelier completed a £35.5m development loan to MCR Property Group.

The 16-month facility will fund the permitted development of the building into 163 studio apartments and 125 cluster rooms. Plans also include a cinema, gym and shared spaces for studying and socialising.

Once completed, Flow Student, MCR's dedicated PBSA operator, will manage the development. The scheme is located close to several of Glasgow's further education institutions, within a 15-minute walk of the University of Strathclyde, Glasgow Caledonian University and City of Glasgow College. The University of Glasgow is also accessible via a short subway journey.

The development will add 288 beds to a city facing a significant shortage of student accommodation. According to BNP Paribas, Glasgow has the UK's highest student-to-bed ratio, at 3.8:1, compared with the national average of 2.7:1. The city has an estimated shortfall of around 18,000 beds.

“MCR has ambitious plans to grow its student accommodation portfolio and build the Flow Student brand,” said Matthew-Blaine Young, head of origination at Atelier.

“As their lending partner, our focus is on structuring the finance they need to deliver those plans. This is a strong opportunity to convert an existing office building into 288 student beds within walking distance of several campuses, in a city where demand for student accommodation outstrips supply. We’re delighted to be working with MCR again to bring the scheme forward.”

“The Atelier team has a deep commercial understanding of the PBSA sector,” said David Tracey, COO at MCR Property Group.

“We saw that first-hand on our Canterbury scheme and are delighted to be working with them again in Glasgow. The team understood the practical demands of converting an office building into a 288-bed student accommodation scheme and structured the facility around our programme to deliver it in time for the 27/28 academic year.”