Aviva Investors has acquired a purpose-built student accommodation (PBSA) property in Glasgow for £23m.

The block in Gilbert Street was completed in January and fully-let for the 2024/2025 academic year. It comprises a 99-bed, all-studio development which offers rooms varying from 17 sqm to 29 sqm. There is an on-site gym, communal lounge, cinema room and external courtyard.

It comes after Aviva Investors acquired a portfolio of six PBSA assets last Decembe in four cities across the UK, providing more than 1,000 bed spaces for students.

James Stevens, head of real estate investment at Aviva Investors, said: “This is another example of Aviva Investors materially increasing its investment in the UK’s living and residential sector.

“The supply of student accommodation has fallen in recent years, despite student numbers continuing to rise – Glasgow is a prime example of this, with the city having the second highest shortfall of student beds in the UK.

“Not only does this acquisition show how private capital can play a role in addressing this imbalance, we believe it will bring long-term performance to our portfolio and support client outcomes.”

Arbdn trust sells property portfolio

Abrdn Property Income Trust (API) has agreed to sell the majority of its portfolio to Travelodge owner GoldenTree Asset Management for £351m.

The trust told shareholders this morning that the US investment giant will buy its Abrdn Property Holdings subsidiary. It involves 39 properties, covering the entire portfolio, apart from land at Far Ralia in the Cairngorms.

The deal follows the collapse earlier this year of a bid by Custodian Property Income REIT. Custodian’s offer, which would have seen API shareholders receive 0.78 Custodian shares for each API share, failed to secure the necessary 75% approval rate needed at a vote in March.

James Clifton-Brown, chair of API, said: “Following a second round of bids, the board considered the GoldenTree Asset Management bid provided the best solution for shareholders, compared with the net present value of what might be achieved by way of individual sales over a longer period and represents a swift implementation of the shareholder resolution to conduct a managed wind down.”