Kelvin Properties has secured an £18.8 million facility from Bank of Scotland to fund its first purpose-built student accommodation (PBSA) scheme in the Glasgow’s West End.
The 134-studio development on Queen Margaret Drive is under construction, with completion targeted for June 2027 ready for intake at the start of the 2027/28 academic year.
The scheme received planning approval for its revised student accommodation use in June 2024, with works commencing in September last year.
Originally acquired in 2019 with consent for a residential development, the site was repositioned following a review of market demand, amid continued pressure on student housing supply in Glasgow.
Glasgow City Council has indicated a shortfall of more than 6,000 student beds in the city, while a recent report by the University of Glasgow showed thousands of students across Scotland are at risk of homelessness, with demand for managed accommodation particularly acute in central and West End locations.
The scheme will be the first PBSA scheme to secure a gold accreditation under the NextGeneration Project sustainability framework, which assesses individual residential developments against environmental, social and governance criteria.
Designed to achieve an EPC A rating, it will use air source heat pumps to eliminate fossil fuels and is targeting 70 per cent carbon reduction. Two bio-diversity focused roof terraces will incorporate habitats including log piles and nesting boxes for birds and bats. The project also commits to full recycling of construction waste and to support skills development, with at least 15 per cent of roles delivered through modern apprenticeships.
Stephen McKechnie, founder of Kelvin Properties, said: “Securing development finance in the current environment reflects confidence in both the project and the wider Glasgow market. This scheme marks an important next step as we expand alongside our established build-to-rent and residential portfolio, and we’re very proud it is already being recognised for its commitment to sustainability.
“We undertook a review of the Glasgow market before repositioning the site and the fundamentals were clear. There is real need for more student housing as student numbers have continued to grow, particularly among the international and postgraduate cohorts, while supply remains constrained in key locations like Glasgow’s West End.”
Graeme Steel, relationship director, Bank of Scotland, real estate & housing, added: “We’re delighted to continue our longstanding relationship with Kelvin Properties through our support of this latest PBSA development in Glasgow. Over the years, we’ve built a strong and positive partnership, and their proven track record and deep understanding of the local market gave us confidence in backing this scheme.
The development is being delivered by CCG as main contractor, with Cooper Cromar as architect, and will be operated by True Student upon completion.
Founded in 1999 and headquartered in Glasgow’s West End, Kelvin Properties began as a residential investment business before expanding into development. The firm has delivered projects including Candleriggs Court in the Merchant City — one of Glasgow’s first build-to-rent schemes — The Atrium in Broomhill, 67 St Bernards in Canonmills, Edinburgh, and The Old Schoolhouse in Glasgow’s West End, which is complete with more than 80 per cent sold.
The company, alongside sister firm Nevis Properties, has five developments in and around Glasgow in its pipeline, including a 59-apartment scheme at Minerva Street in Finnieston and the B-listed Mount Building in Glasgow city centre, dating from 1882, which is set to be redeveloped into a 21-home build-to-rent project.
