An empty office building in Glasgow city has just been purchased for £5.5 million by Maven Capital Partners, one of the UK's leading private equity managers.
The acquisition of six-storey Mitchell House on Bath Street marks Maven's second venture into the student accommodation market in Glasgow. The refurbishment of the property will house 70 students, and should be completed in time for the 2015/16 academic year. They will also be working alongside a project management company called Calmont Group.
Despite Glasgow being a popular university, the region has one of the most undersupplied student accommodation markets in the UK. Ramsay Duff of Maven Capital Partners said that 'the student accommodation sector continues to provide good returns for investors, given the continued strong demand from occupiers and institutional purchasers', and argues that Glasgow is no exception.
However, Maven Capital Partners are not only focusing on Scottish-based residences, as they have also announced a further property development in Selly Oak, Birmingham, alongside IP Global, a Singapore-based Investment Fund. They have already secured planning permission to build 100 studio apartments with en-suite facilities, in time for the 2016/17 academic year.