Q Investment Partners (QIP) and HG Developments (HGD) have purchased a 198-bed purpose-built student accommodation (PBSA) site in Edinburgh from property developer, Summix, enabling the delivery of a £30 million development.
This is the first venture north of the border for QIP, a Singapore-based private equity real estate firm and HGD, a UK-based developer
The purchase also marks the launch of a long-term strategic partnership between QIP and HGD. The companies are establishing an institutional PBSA platform as they seek to increase their investment in this established sector. Summix also hopes to work with the partners on delivering new sites moving forward.
While this is the first project that QIP and HGD have worked together on, both companies have a long-standing track record in PBSA extending over a decade.
The high-quality purpose-built student accommodation site on London Road was approved by City of Edinburgh Council in June.
Located opposite Meadowbank Stadium and in close proximity to the city centre, the development will serve to redevelop a brownfield site which was formerly in commercial retail use.
This mixed-use building will be a contemporary state of the art development comprising a mix of clusters and studios together with a community/office space, student common areas, a laundry and cycle parking.
The development will deliver an estimated £15 million of investment in its construction and will also bring significant vitality, economic and social benefits to this part of Meadowbank, estimated to generate 85 jobs through the construction period.
It has also been estimated that the students from this development will generate c. £1.8 million in additional expenditure on items such as food, clothes and eating out. This expenditure has the capacity to support a further 15 jobs in the retail, leisure and transport sectors in Edinburgh and the wider regional economy.
Rob Greaves, Director for HGD commented:
“We are delighted to be working in partnership to deliver what we hope is the first of many schemes in Scotland.
Ben Hall, Head of Investment for QIP said:
“Despite the uncertainties of Brexit, UK PBSA remains an attractive asset class and Edinburgh is proving especially buoyant as one of the top student accommodation investment markets. With world-class universities there is strong demand for student accommodation, boosting investor confidence, and this is especially true for Asian investors.”
Stuart Black from Summix commented:
“It is great to be working in partnership with QIP and HGD as they begin work on this scheme, their first venture north of the border. We look forward to working with them on future deals.
“This development will serve to address the increasing demand for student accommodation, fulfilling the ambitious growth plans of world-leading universities in the city, which are key drivers of the economy. It will also help to reduce pressure on the private housing market as well as delivering a substantial amount in additional expenditure into the local economy.”