The Fitzalan is the result of a conversion in 2017 to provide 271 studios and 42 two-bedroom flats, as well as a retail unit at ground floor level. Communal areas include a gym, cinema room, communal study rooms and laundry, plus a landscaped garden with barbecues and table tennis tables.

The Fitzalan represents ASPER’s first acquisition in the UK student sector, which is experiencing high demand while supply remains limited. Cardiff is a Russell Group university city witnessing levels of student growth, both domestic and international, twice the national average. Between 2013-2019, total student numbers at the University of Cardiff grew 19%. The city is characterised by a demand supply imbalance, with 56% of full-time students unable to access university or purpose-built student accommodation, underpinning low vacancy rates for the current academic year and strong rental growth.

McLaren Property CEO John Gatley comments, “The success of the Fitzalan highlights that well-located and well-specified purpose-built accommodation remains in high demand among both students and investors. We continue to build our development pipeline on the strength of the market.”

Alex Taylor, Transactions Manager at abrdn, comments, “This is an acquisition of a very well-specified direct-let asset and demonstrates our continued appetite to invest in strong student locations. abrdn will continue to look for similar opportunities during the course of 2022.”

Robert McDonnell, Fund Manager at abrdn, comments, “This transaction represents a strong addition to our portfolio, providing the Fund with an income-producing asset and one of the best located schemes in Cardiff.”

The property appeals to a wide range of occupiers, including international students, which illustrates the quality of the amenity space and accessibility to nearby campuses of both University of Cardiff and University of South Wales. Following this transaction, ASPER will continue to actively seek build to rent and student accommodation opportunities in both the UK and Ireland.

Three further operational student accommodation assets in Southampton, Dundee and Edinburgh – all 100% occupied – are currently being marketed by McLaren Property. McLaren Property has a further pipeline of 3,000 student bedrooms across the UK. A 473-bedroom scheme in Leeds’ Civic Quarter received planning consent in July and funding from Ares and Generation Partners.

Cushman & Wakefield acted on behalf of the ASPER and MTRE acted on behalf of McLaren Property.