A former office building in Glasgow will be converted into a 288-bed purpose-built student accommodation scheme following a £35.5m development loan from Atelier to MCR Property Group.
The 16-month facility will fund the permitted development conversion into 163 studio apartments and 125 cluster rooms. The development will include a cinema, gym and shared spaces for studying and socialising, with Flow Student, MCR’s dedicated PBSA operator, managing the property upon completion.
Strategic location near universities
The scheme is situated within a 15-minute walk of the University of Strathclyde, Glasgow Caledonian University and City of Glasgow College. The University of Glasgow is accessible via a short subway journey.
Addressing accommodation shortage
The development will add 288 beds to a city facing significant student accommodation shortages. According to BNP Paribas, Glasgow has the UK’s highest student-to-bed ratio at 3.8:1, compared with the national average of 2.7:1. The city has an estimated shortfall of around 18,000 beds.
Matthew-Blaine Young, head of origination at Atelier, said: “MCR has ambitious plans to grow its student accommodation portfolio and build the Flow Student brand. As their lending partner, our focus is on structuring the finance they need to deliver those plans.”
The development finance follows recent property lending activity in the UK market, where specialist lenders have been providing finance for various development projects.
David Tracey, COO at MCR Property Group, said: “The Atelier team has a deep commercial understanding of the PBSA sector. We saw that first-hand on our Canterbury scheme and are delighted to be working with them again in Glasgow.”
The scheme is scheduled for completion in time for the 2027/28 academic year.
