Planning permission has been granted to Empiric Student Property in order to carry out the construction of a 166-bed premium student accommodation project. The UK student accommodation owner and operator has managed to secure permission and has also entered into a forward funding agreement for the development. This funding agreement is for £26.56 million. It is thought that when the work is complete, the newly built student accommodation will be valued, with the developer receiving another capped payment then.
The acquisition of the site is great news for the UK student accommodation owner and manager. Located in the centre of Edinburgh’s Old Town. The CEO of Empiric Student Property, Paul Hadaway has expressed his delight at the recent acquisitions as part of a wider mixed-use development project. The developer for the student accommodation and the wider project is Peveril Securities.
According to data released by HESA in regards to the 2015.16 year, Edinburgh is home to 49,705 full time students. It has been calculated that 38% of the full time students that attend the University of Edinburgh have international backgrounds. These students are becoming more discerning about where they choose to live while they study, so the development of the new accommodation will no doubt be sought after.
Demolition work will be carried out on the existing buildings on the site to make room for the new student accommodation, which will consist of an all-studio bed scheme with a range of communal facilities. The wider development being carried out by Peveril will also include a hotel and 52 other residential units. The construction is expected to be complete in time for the 2019/20 academic year. The construction project is ten minutes’ walk away from the main campus of the University and is also in close proximity to the Grassmarkets area of the city, which will be an added benefit to the development.