Joint development with Calmont
Maven to convert offices to student homes
Maven Capital Partners has acquired Mitchell House in Bath Street, Glasgow and plans to convert the building, next to the King’s Theatre, into student accommodation.
Currently empty, it will provide units for 70 students over six floors and Maven will work in conjunction with project manager Calmont Group.
The projected development costs are £5.5m and the works are scheduled to be finished in time for the 2015/16 academic year.
Ramsay Duff, of Maven, said: “There is still a shortfall of good quality purpose built student accommodation in the city and this development will help to satisfy that demand.”
The development of Mitchell House marks Maven’s second venture into the student accommodation sector in the city.
In late 2013, it raised £6.8m to fund the purchase and conversion of Claremont House in Glasgow’s west end into a 94 bed student residence. It was recently sold to a European property fund for £8.37m
Glasgow has one of the most undersupplied purpose-built student accommodation markets in the UK. But with demand rising and an increasing number of overseas students coming to the city to study, the student accommodation sector is producing positive rental growth and has demonstrated its resilience throughout the economic downturn.
Mr Duff added: :The student accommodation sector continues to provide good returns for investors, given the continued strong demand from occupiers and institutional purchasers.
“This is particularly the case in markets that are under-supplied with purpose built student accommodation such as Glasgow and we were therefore delighted to have secured such a high quality and well-located development as Claremont House for Maven investors. The development opened on time, is now well-let and the sale has provided attractive returns for our investors within a short investment period.”