Dutch pension fund manager APG and Student housing group Scape are buying a UK site for a £100m (€116m) student accommodation development.

Real Estate Capital Holdings said it has agreed to sell 44 Merrion Street, a purpose-built student accommodation (PBSA) development opportunity in Leeds, for £18.5m.

The site has planning permission for 660 student bedrooms split across two towers – standing at seven and 32 stories.

Knight Frank advised Real Estate Capital Holdings on the disposal.

Mike O’Sullivan of Knight Frank’s student property team, said: “With over 59,000 students arriving to study in the city each year, this is an exceptional development opportunity to tap into an undersupplied market. Every year around 60% of university students living in Leeds are unable to access either campus or privately-owned PBSA. 44 Merrion Street will provide Leeds with much needed, high-quality accommodation.”

Paddy Shovlin, founder, director and shareholder of Real Estate Capital Holdings said: “The scheme will provide new street-level retail, arts and cultural space, as well as delivering public realm enhancements and new trees within the vicinity of important historic assets such as the Grade I Listed St John’s Church.”

Adam Brockley, co-founder and chief development officer of Scape, said: “This an important and exciting first step in Scape and APG’s expansion strategy.

“We are really looking forward to completing this landmark site with SimpsonHaugh and contributing to the local community. This is going to be a truly iconic building on the Leeds skyline and the beginning of further developments for Scape in leading academic cities both in the UK and globally.”

Last month, APG partnered with Scape to establish a £500m UK student housing venture seeded with a £250m mixed-use project. The newly created venture was seeded with 1,000 PBSA beds in London and the South-East, the £250m mixed-use residential and PBSA led development scheme in Canada Water, and the first Scape Living building in Guildford.

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