[SINGAPORE] The manager of Elite UK Real Estate Investment Trust (Reit) on Thursday (Jul 24) announced that it has received planning approval to convert a freehold property in Scotland into a 168-bed purpose-built student accommodation (PBSA) facility.
The property, Lindsay House, is a former government building in the city of Dundee that was valued at around £1.5 million (S$2.6 million) as at end-December 2024.
Occupying a prime location in the city’s Central Business District, it is close to transportation nodes as well as the city centre.
It is also within walking distance of the University of Dundee and Abertay University. The manager of the Reit noted that the University of Dundee has been ranked top in the UK for bioengineering and biomedical engineering, while Abertay University is renowned for video game design.
“With strong rental fundamentals in the area, the project presents an attractive opportunity to generate long-term, resilient income while supporting Dundee’s growing student population,” the manager added.
The two universities’ combined student population of 16,165 during the 2023/2024 academic year and the Dundee market’s existing PBSA bed capacity of 4,620 translates to a student-to-bed ratio of around 3.5 times.
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To reduce time to market, the property’s existing structures will be maintained during redevelopment, the manager said.
The new PBSA facility is expected to be ready for occupation ahead of the 2027/2028 academic year, which starts in September 2027.
The redevelopment is a “timely addition” to the city, given the Dundee market’s short supply of high-quality affordable PBSA, noted Mark Findlay, director of development at Mys Asset Management, the development manager and PBSA operator engaged to manage Lindsay House’s development.
Mys manages more than 2,000 student beds across the UK.
Lindsay House has an estimated gross development value of around £24 million, with a return on investment of around 18 per cent and a yield on cost of more than 7 per cent.
Joshua Liaw, chief executive officer of the manager, remarked that securing planning approval for Lindsay House will broaden the Reit’s portfolio mix to non-discretionary sectors such as student housing.
“This redevelopment of Lindsay House will significantly transform the currently vacant property into a resilient income-generating asset and strengthen the Reit’s intrinsic value,” Liaw said.
Units of Elite UK Reit finished Wednesday 1.4 per cent or £0.005 lower at £0.34.