Puma Property Finance has provided an £11 million loan for the second phase of a purpose-built student accommodation (PBSA) project in Dundee. This loan will add 98 beds to the existing 152-bed capacity of the development.

The loan has been granted to Glenmore Group, marking their fourth transaction with Puma. The first phase of the PBSA was funded by Puma in 2023. Both phases of the development are expected to be completed by the summers of 2024 and 2025, respectively.

Located in the city centre, the PBSA offers studio rooms close to the University of Dundee and Abertay University. This expansion comes in response to growing demand for student accommodation. UCAS figures show that the number of 18-year-olds applying for university for the 2024 cycle reached 372,200, the second-highest since 2015.

Savills reports that 20 of the largest student cities need an additional 234,000 PBSA beds to balance the student-to-bed ratio, with London alone requiring 100,000 beds.

Eliot Kay, managing director at Puma, highlighted the potential in the PBSA sector, stating, “The sector continues to deliver attractive returns, with rental growth projected to hit between 4% and 6% this year. We have strong experience in the PBSA sector, having delivered over 3,000 student beds to date, and this development represents our sustained commitment to supporting essential social infrastructure across the UK.”