Aviva Investors has acquired a purpose-built student accommodation (PBSA) property in Glasgow for £23m.

The asset management business of Aviva said the move continues its strategic asset allocation to UK living.

Completed in January 2024 and fully let for the 2024/2025 academic year, the 99-bed development holds an EPC rating of A and has no fossil fuels on site, having been built with all-electric solutions and air source heat pumps for its ongoing energy and heating needs.

The investment in the property comes after Aviva Investors acquired a portfolio of six PBSA assets in December 2023, spread across four cities in the UK which provide more than 1,000 bedspaces for students. In July, it also agreed to acquire and forward fund a fully amortising lease for the creation of a new student village at Staffordshire University.

“This is another example of Aviva Investors materially increasing its investment in the UK’s living and residential sector,” commented head of real estate investment at Aviva Investors, James Stevens.

“The supply of student accommodation has fallen in recent years, despite student numbers continuing to rise. Glasgow is a prime example of this, with the city having the second highest shortfall of student beds in the UK.

“Not only does this acquisition show how private capital can play a role in addressing this imbalance, we believe it will bring long-term performance to our portfolio and support client outcomes.”

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