Glasgow-based private equity firm Maven Capital Partners and Hong Kong-based IP Investment Management have continued their move into the UK student housing sector with the construction of Stirling’s first purpose built student accommodation (PBSA).
Maven will act as the asset manager representing IPIM to deliver the £18.2 million project in conjunction with development manager Whiteburn Projects Limited and senior debt finance from The Royal Bank of Scotland.
The 207-bed facility will be located on the banks of the River Forth next to Stirling city centre and within easy commute of the out-of-town campus of the University of Stirling.
The site is located only 250 metres from Stirling’s main railway station and sits on the dedicated bus route to and from the university campus, which runs up to 19 buses per hour.
“Forthside Way will become the first PBSA in Stirling, and will help address the acute shortage in accommodation for the substantial student population of circa 10,000,” said Maven.
“Construction is due to commence in early 2018, with the complex due to be open in time for the start of the 2019-20 academic year.”
The acquisition is Maven’s seventh PBSA collaboration with IPIM.
Together they have delivered more than 1,200 purpose built student accommodation beds at sites across the UK, including the £19 million development of The Millhouse in Edinburgh and 103 studios at 800 Bristol Road in Selly Oak, Birmingham.
Maven investment director Colin Anderson said: “University of Stirling has strong a reputation for its sporting excellence and there is strong demand for a number of its courses, a number of which are considerably over-subscribed.
“Despite this, Stirling has one of the most acute shortages of student accommodation in the country.
“With no private PBSA market to speak of in the city, Maven is delighted to be working once again with IPIM to greatly enhance the quality of the accommodation provision and play its part to help the university attract and retain the best students from the UK and further afield.”
IP Investment Management investment director Selina Williams said: “The acquisition of Forthside Way complements our growing portfolio of PBSA assets in strong UK university cities and we are delighted to be continuing our successful partnership with Maven in this sector.
“We continue to see opportunities in student accommodation in towns and cities with strong fundamentals such as Stirling.”
Iain Robertson, Relationship Director, Royal Bank of Scotland, said: “We are proud to support Maven and IPIM in their latest development project.
“The venture will provide much needed accommodation for Stirling’s large student population, offering a modern and safe environment in which to live.”