A property and private equity business has bought a Nottingham city centre building with a view to turning it into student accommodation.
Maven has spent £3.7 million on the 28,000 sq ft property, opposite the Victoria Shopping Centre. The seller was a South African property fund.
The property, which is at 191-19 Lower Parliament Street, is currently made up of a basement, a ground with two retail units let to Bonmarche and Poundland, and a first floor.
Maven said the building offered it significant opportunity for re-development above the retail units.
It plans to seek planning permission to build student flats on the first and additional upper levels, while keeping the ground floor as shops.
The acquisition is in line with the business’ strategy to target properties with value-add potential across key UK regions, and was funded by Maven Investor Partners, a network of professional client investors.
A Maven spokesman said: “Nottingham has 59,400 full time students and is home to two well-regarded universities, the University of Nottingham and Nottingham Trent University, which ranked 21st and 40th respectively in the Times and Sunday Times Good University Guide 2020.
“The city is currently undersupplied in purpose-built student accommodation (PBSA) with 55 per cent of students unable to access purpose built accommodation.
“Demand for PBSA is unlikely to be impacted in the wake of the pandemic, with historical data on student enrolment highlighting its resilience.
“Indeed, a reduction in the number of job opportunities during periods of economic downturn may even encourage an uptick in enrolment figures.
“Moreover, student mobility is expected to stage a recovery from the beginning of the 2021-22 academic year, suggesting that PBSA in the UK’s university cities retains its considerable capacity for value-addition in the long term.”
Maven has experience in the sector, developing and operating properties in cities including Glasgow, Dundee, Durham, Liverpool, and Birmingham.
Partner Andrew Whiteley said: “The strong ongoing demand for purpose built student accommodation from both domestic and overseas students underpins our continued interest in this sector.
“Early reports suggest an increase in applications to UK universities again this year, further supporting the evidence of individuals investing in higher education in uncertain times.
“Nottingham is one of the largest regional student cities and we are delighted to be pushing forward with a planning application to provide an excellent base for students looking to enjoy all the benefits of city centre living.”
Maven Capital Partners UK LLP is an independent property and private equity manager, with more than £660 million funds under management and available to invest. It is headquartered in Glasgow, with offices across the UK, and invests in schemes valued up to £30 million.
