Standard Life Investments Long Lease Fund Purchases Glasgow Student Accommodation
03 June 2016
The Standard Life Investments Long Lease Fund has invested £17.4 million in Blythswood House, a student accommodation development in Glasgow.
Blythswood House opened in September 2015 and was purpose-built for the Glasgow School of Art. It is situated on 200 West Regent Street in the heart of the city, five minutes from the art school.
The development was acquired from Regional REIT Ltd managed by London & Scottish Investments. The property includes 216 rooms arranged in a selection of fully-furnished flats with large common areas on each floor and high-spec furnishing and appliances. It is leased to Glasgow School of Art on a 25-year lease.
Richard Marshall, Standard Life Investments' Head of Secure Real Estate, commented: "Blythswood House is one of the premier student accommodation properties in Glasgow. This investment fits with Standard Life Investments' Long Lease Fund’s strategy of acquiring prime commercial property let to good covenants and benefitting from long, index linked income. The growing student accommodation sector is performing well and we are confident that Blythswood House will deliver the stable returns required by our investors to help match their long term liabilities."
BNP Paribas Real Estate acted for Standard Life Investments, whilst Inglis Howie Property Consultants advised the seller Regional REIT Ltd.