Demand for student accommodation sways market in Aberdeen and Liverpool

Posted on 30 March, 2015 by Cliff Goodwin

A multi-million pound scheme to transform an historic Aberdeen church into a business hub has been abandoned because of a lack of office demand. The city’s Triple Kirks church will now be converted to student accommodation.

Young stylish man at home with a laptop

The decision by developer, Dandara, to abandon its £20m plan to transform the city centre ruin comes as Liverpool City Council announces an investigation into the number of office buildings Merseyside is losing to student flats.

Regeneration work on the Victorian A listed Triple Kirks — Britain’s only church purpose-built to house three separate congregations and which originally boasted three separate spires — began in June last year, with a completion date set for early 2016.

But now Dandara claims the supply of Grade A office space in Aberdeen far outstrips demand and it wants to turn the 170-year-old church into “high-end” student flats. “Changing from an office to academic accommodation has been driven by market cycles,” explained the firm’s commercial director, Neil Young.

He said Aberdeen had a student population of around 21,000 and fewer than a third were able to secure a home in the city. “The commercial property market remains strong in Aberdeen and we continue to invest heavily in commercial development throughout the region,” Young added.

“Within the city core however the dynamic has changed with a significant amount of office development under way. Our flexibility and market-leading capability as a premium housebuilder has allowed us to review our plans and re-approach this iconic site to deliver a development that will benefit the city.”

Plans were approved by Aberdeen City Council in August, 2011, when the church was owned by the Stewart Milne Group. Dandara acquired the site before unveiling a scheme to rebrand it as The Point, offering 72,600 sq ft of commercial office space. At the time Dandara’s managing director, Gavin Wyley, described the building as one of the city’s “true architectural jewels”.

The company is expected to submit revised plans for the project, incorporating the work it has already completed, within months.

Meanwhile, in Liverpool, the mayor has launched a “task group” to examine whether city centre commercial development is being affected by the steady rise in student accommodation schemes.

“It is crucial we have a diverse mix of uses of buildings in the city centre for residents, businesses, students and visitors alike,” explained Liverpool mayor, Joe Anderson, adding that he had asked for a review: “Because, although we very much welcome and value the contribution that students make to the city, we need to be mindful of the recent rapid growth in student accommodation, and the knock on effects it could have should there be any marked fluctuations in demand.”

The group will examine what impact the conversion of city centre sites is having on other competing land uses such as businesses and retail. Its cross sector members will be drawn from the city’s three universities, student bodies and developers, and will focus on the impact large scale student flat developments are having on the city centre and other areas.




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