A property developer has received more than £4 million to tackle a shortage of student flats in Dundee.
Last year, Crucible Developments bought a 75,000 sq ft plot on the corner of Nethergate and West Marketgait.
The majority of the site is being used for BT’s new offices, which are due to open next year.
The business decided to use 7,500 sq ft of the space to build private student accommodation.
The firm began the project with an initial £3m.
It has now secured an additional £4.1m development loan through Bank of Scotland to help complete the construction.
The student accommodation will feature 55 studio-style en suiite rooms and two retail units. It is due to be complete by December 2023.
Dundee student accommodation shortage
Brian Robinson, director at Crucible Developments, said: “The student housing shortage in Dundee has reached a critical point and we are very pleased to be able to play a part in solving this issue.
“When students left their accommodation during the Covid-19 pandemic, many landlords who would normally rent to students turned to longer-term letting, leaving a housing shortage when students returned to the city.
“We pride ourselves on developing first-class projects and this is no different.
“Working with Bank of Scotland has enabled us to ensure that we can continue on this trajectory and bring housing to those who need it as quickly as possible.”
‘Unprecedented demand’ in Dundee
Grant Fraser, relationship director at Bank of Scotland, said there is “unprecedented” demand for student housing in the city.
Mr Fraser said rental room prices have soared 33% in the last year.
He added: “This is an issue that needs urgent attention.
“We are proud to be supporting Crucible Developments in their latest project that will bring much needed relief to a strained housing system.
“The rooms will offer a first-class option for students and will drive footfall in the area.
“We’re looking forward to hopefully continuing to support the business as it grows its portfolio across Scotland.”
