Unite Students, the UK’s premier student accommodation developer, has unveiled plans for a significant expansion in Glasgow. The company disclosed an option agreement to purchase a central Glasgow site for an 800-bed development, contingent on planning approval. This move is a strategic response to Glasgow’s pressing student housing deficit. The city, a hub for three of the UK’s top 75 universities, will see Unite’s bed count rise to 3,000 upon completion.

The development, with an estimated cost of £95 million, is projected to yield a return on cost of approximately 7.5%. Aiming for planning consent by the first half of 2024, the scheme’s launch is set for the 2026/27 academic year. Notably, Unite anticipates a university partnership, with over half the beds earmarked for a multi-year nominations agreement with a prominent university. Funding for this venture will be sourced from capital recycling via disposals.

Post-interim results, Unite has maintained momentum in its development pipeline. August saw the completion of Morriss House in Nottingham, which is now fully occupied for the 2023/24 academic year.

The company has also kickstarted its Temple Quarter project in Bristol, following a £300 million equity issuance. Additionally, the Meridian Square development in Stratford is on track, with planning approval anticipated in the last quarter of 2023.

Michael Burt, the Group Investment Director at Unite Students, remarked on the new Glasgow project, emphasizing its role in providing quality, affordable student lodgings. He noted the company’s steady progress in two new developments, funded by recent capital inflows. Burt highlighted Unite’s commitment to addressing the student housing crisis, especially as the private rental sector faces challenges. The company’s current development pipeline boasts 5,600 beds in top university cities.