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Developers seek £200m funding for Glasgow student projects – React News

What Developers trying to fund £200m of Glasgow student projects

Why Other than London, Glasgow has the highest student-to-available-bed ratio in the UK

What next Artisan, Dandara and MRP all trying to get schemes off the ground with forward-funding hunts

A trio of developers are tapping up the funding market for a £200m pipeline of student developments in Glasgow, React News can reveal.

Artisan, Dandara Living and McAleer & Rushe Property (MRP) have instructed advisers to scope out forward funding for three schemes that could deliver close to 1,200 new student beds.

292 St Vincent Street

292 St Vincent Street

Agents Ryden and Scarlett Land & Development have been instructed by Artisan to find an investor to support the development of 292 St Vincent Street, where there is planning in place for 321 studio apartments in a 16-storey scheme.

The forward-funding opportunity has a guide price of £60.3m attached to it, a figure that breaks down to a 5.85% net initial yield based on net operating income projections. The site is located on the junction of St Vincent Street and Pitt Street, offering access to the city centre and Glasgow’s West End.

The Stores and MRP

Dandara Living is also in the market with a major forward- funding opportunity. The developer has instructed Knight Frank to run a process to bring funding into its The Stores project, a mixed-use development on the edge of the West End. The agent has launched the sale with a guide price of £62.5m, which is to fund the 490-unit student component of the scheme.

The site is on the north bank of the River Clyde, immediately to the west of the city centre in Anderston.

MRP is also understood to be exploring funding options for a proposed £70m-plus student development at the corner of Renfrew Street and Renfield Street.

It would be the final part of the regeneration of a “city block” that has included the construction of the Citizen M Hotel and Maldron Hotel.


The Stores

Although it is unusual to have three large student funding drives happening concurrently, the supply/demand dynamics are currently still favourable for more development in the city. There are currently 20,500 PBSA beds for a population of 77,640 full time Glasgow students. Other than London, Glasgow has the highest student-to-bed ratio in the UK for cities containing Russell Group institutions for full-time students, with 3.6 students for every bed (London has four).

Last year Knight Frank’s data noted that, by 2028, the value of the PBSA sector will grow to £104bn. The prediction has been based on the firm’s analysis of current operational student property, stock under construction and weighted average rents. Knight Frank said the value of the market for PBSA in the UK stood at £85.8bn in 2023.

All parties declined to comment.

Author: Chris Borland
Published: 02.02.24 – React News