Elite UK Reit to convert Scotland property into PBSA facility by Sep 2027

[SINGAPORE] The manager of Elite UK Reit on Thursday (Jul 24) announced that it received planning approval to convert a freehold property in Scotland into a 168-bed purpose built student accommodation (PBSA) facility.

The property, Lindsay House, is a former government building in the city of Dundee that was valued at around £1.5 million (S$2.6 million) as at end-December 2024. It occupies a prime location in the city’s central business district and is within walking distance of two universities as well as the city centre.

“With strong rental fundamentals in the area, the project presents an attractive opportunity to generate long-term, resilient income while supporting Dundee’s growing student population,” the manager said.

Joshua Liaw, chief executive officer of the manager, remarked that securing planning approval for Lindsay House will broaden the Reit’s portfolio mix to non-discretionary sectors such as student housing.

“This redevelopment of Lindsay House will significantly transform the currently vacant property into a resilient income-generating asset and strengthen the Reit’s intrinsic value,” Liaw said.

Mark Findlay, director of development at Mys Asset Management, the development manager and PBSA operator engaged to manage Lindsay House’s development, highlighted that the property’s conversion into a PBSA is a “timely addition to the city”.

This comes as the Dundee market remains in short supply of high quality affordable PBSA, Findlay said.

Lindsay House has an estimated gross development value of around £24 million, with a return on investment of around 18 per cent and a yield on cost of more than 7 per cent.

The new PBSA facility is expected to be ready for occupation ahead of the 2027/2028 academic year, which starts in September 2027.

Units of Elite UK Reit finished Wednesday 1.4 per cent or £0.005 lower at £0.34.