Kelvin Properties has secured an £18.8m loan from Bank of Scotland to fund the delivery of a purpose-built student accommodation (PBSA) scheme in Glasgow’s West End.
CGI of Kelvin Properties’ PBSA scheme in Glasgow
The development, located on Queen Margaret Drive, is already under construction and will include 134 studio rooms upon completion. Planning permission was granted in June 2024, with construction commencing last September.
Glasgow-based developer Kelvin Properties is aiming for an EPC ‘A’ rating, with air source heat pumps to eliminate fossil fuels, and an additional 70% carbon reduction target.
The site was originally acquired in 2019, with consent for a residential development, before it was repositioned following a review of market demand amid pressure on student housing supply in Glasgow.
CCG has been appointed as the scheme’s main contractor, with Cooper Cromar as architect. The scheme will be operated by True Student upon completion.
Kelvin Properties founder Stephen McKechnie said: “Securing development finance in the current environment reflects confidence in both the project and the wider Glasgow market. This scheme marks an important next step as we expand alongside our established build-to-rent and residential portfolio.
“We undertook a review of the Glasgow market before repositioning the site and the fundamentals were clear. There is real need for more student housing as student numbers have continued to grow, particularly among the international and postgraduate cohorts, while supply remains constrained in key locations like Glasgow’s West End.”
Graeme Steel, relationship director at Bank of Scotland for real estate and housing, added: “We’re delighted to continue our longstanding relationship with Kelvin Properties through our support of this latest PBSA development in Glasgow.
“This project stood out due to the strength of Glasgow’s student demand and the quality of the proposed development, which rightly has received the highest possible accreditation by NextGeneration, and the first PBSA recognised. PBSA remains a resilient and important sector, helping to meet growing demand, support the city’s universities and ease pressure on the wider housing market.
Completion is targeted in time for the 2027-28 academic year.
According to data published by Knight Frank in November, the UK’s PBSA sector acquired nearly £50bn from investors over the past 10 years.
