Legal & General (L&G) has purchased a purpose-built student accommodation (PBSA) development in Edinburgh for over £35 million. The acquisition of Lower Gilmore Place, located in the city’s Fountainbridge area, marks the latest in a series of deals within the student housing sector.
The property, overlooking the Edinburgh Union Canal, comprises 151 student beds across two phases. The first phase, completed in the summer of 2023, offers 69 beds. The second phase, currently under development, will provide an additional 82 beds upon completion.
L&G’s Managed Fund
L&G’s Managed Fund, which focuses on balanced pension investments, acquired the property from Glencairn Properties. This acquisition represents the fund’s first direct-let PBSA investment and aligns with its strategic focus on growth within the PBSA and Operational Real Estate sectors.
Key Highlights:
- Prime Location: Lower Gilmore Place is strategically positioned near several universities, including the University of Edinburgh, Heriot-Watt University, and Napier University.
- Strong Investment: The acquisition reflects the robust investor demand for PBSA assets in Edinburgh and other Russell Group university cities.
- Continued Growth: L&G’s Managed Fund remains committed to expanding its portfolio in the PBSA and Operational Real Estate sectors.
This transaction underscores the ongoing appeal of student housing investments, driven by favorable supply-demand dynamics and the resilience of student demand in key university markets.