Maven Capital Partners, one of the UK’s leading private equity managers, has purchased an empty office building in Glasgow city centre for £5.5 million, which is to be redeveloped as accommodation for 70 students.
The acquisition of Mitchell House on Bath Street, which comprises six floors, marks Maven’s second venture into the student accommodation market within Glasgow. The refurbishment of the property will include the building of studio apartments along with a large common area on the ground floor. In conjunction with project management company, Calmont Group, the development is scheduled to be completed in time for the 2015/16 academic year.
Ramsay Duff of Maven Capital Partners said:
“We are very pleased to be working alongside Calmont Group on this exciting project. There is still a shortfall of good quality purpose built student accommodation in the city and this development will help to satisfy that demand.”
In late 2013, Maven raised a total of £6.8 million to fund the purchase and conversion of Claremont House into a 94-bed student residence, which opened in time for the 2014/15 academic year. A specialist European property fund has since bought the building for £8.37 million.
Despite Glasgow being a popular university city, the region has one of the most undersupplied student accommodation markets in the UK.
However, the company is not only focusing on Scottish-based student residences, as they also announced a further property development in Birmingham. Maven will act as asset manager on behalf of IP Global, a Singapore-based Investment Fund, on a project in the Selly Oak region of the city. This purpose-built student accommodation will be located close to Birmingham University campus and has planning permission to build 100 studio apartments with en suite facilities. This particular development is expected to be ready for the 2016/17 academic year.