AEW UK REIT has been given the go-ahead for a new 527-bed student accommodation scheme in Glasgow city centre.
The firm exchange contracts to buy the site from IQ Student Accommodation in October 2020 and now expects to complete the sale once the standard three-month judicial review period of the planning consent passes.
The scheme, at 225 Bath Street, was given the go ahead at a council planning meeting on 8 February. AEW will demolish a 6-7-storey 1970s brown-brick office building on the site and replace it with a circa 160,000 sq ft student accommodation development over seven, nine and 11 storeys. The scheme provides for zero cars.
Glasgow’s planning committee said the proposed development would repurpose the street block bound by Bath Street, Pitt Street, Bath Lane and Holland Street, allowing a “modern intervention and a positive contribution” to the city centre in terms of use and design.
“While acknowledgement is given to the existence of neighbouring student accommodation, the changing nature of this area with high-density residential development, coupled with the facilities and services available within the city centre, mean this proposal shall not have an adverse impact upon the existing community, in fact such a use shall positively contribute to the vibrancy that underpins the city centre,” said the planning report.
Alex Short, portfolio manager at AEW UK REIT, said: “This is the realisation of a long-term asset management strategy for our office asset in Glasgow. Following its sale, which has been conditional on planning consent, we will see an increase in the portfolio’s occupancy rate, a reduction in overheads and new capital for further investment.”
The occupancy rate for AEW’s portfolio will improve to 93.08%, from 88.98%.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
