Glasgow developer sells 'luxury' student properties with own cinemas for £90m

The student housing arm of Glasgow-based property developer London & Scottish Property Investment Management (LSPIM) has sold two “luxury” student developments for £90 million.

The Scottish firm has sold its first two luxury student property developments, located in Sheffield and Leeds, above.

The firm sold the properties, which are located in Leeds and Sheffield and provide homes for more than 700 students, on behalf of a US-based private investor.

The two properties, marketed by Knight Frank, have been bought by an unnamed Far Eastern investor, who was represented by JLL and Savills IM.

The properties are LSPIM’s first venture into purpose-built student accommodation.

Stephen Inglis, the firm’s chief executive, said: “We are very pleased with the level of interest shown in these properties. We have developed a sound business model and have good relationships with both lenders and investors.

“As a result, these two projects – our first in the student accommodation sector – have been hugely successful for us.”

Both properties feature lounges, a study area, a private dining area, a cinema, a games area, a fitness suite and outdoor areas with BBQ and open-air cinema.

Rachel Pengilley, partner in Knight Frank’s student property team, said: “This transaction represents the most significant deal in the UK student accommodation market since we entered lockdown in March.

“The acquisition demonstrates continued confidence in the sector from overseas investors, particularly at a time when there are some wider concerns regarding student numbers for the academic year 20/21.

“Despite a tumultuous first half of 2020, the long-standing fundamentals of the student sector remain attractive, and we are seeing renewed interest to acquire from a variety of funding sources.”

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