AEW UK REIT plc (“AEWU”) has announced that planning consent has been granted for the demolition and development of a 527-unit student accommodation scheme at 225 Bath Street in Glasgow city centre.
This follows the exchange of contracts for the sale of the site with a subsidiary company of IQ Student Accommodation in October 2020. The sale of 225 Bath Street is expected to complete after the standard 3-month judicial review period.
Once the sale has completed, the occupancy rate for AEWU’s portfolio (as of 31 December 2021) will improve to 93.08%, from 88.98%.
Alex Short, Portfolio Manager, AEW UK REIT plc, commented: “This is the realisation of a long-term asset management strategy for our office asset in Glasgow. Following its sale, which has been conditional on planning consent, we will see an increase in the portfolio’s occupancy rate, a reduction in overheads and new capital for further investment.”