Update: Sale of two Edinburgh University accommodations ‘not connected’ to funding crisis

The university is seeking to sell David Horne House and Kitchener House

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The University of Edinburgh has put two of its student accommodation properties on the market and has told The Tab Edinburgh that profits will not be used to ease a funding crisis at the institution.

The decision comes amid “urgent financial challenges” that have led to staff and courses being cut at the university, with some reports indicating that the sale could be related.

Instead, a university spokesperson said any profits will be reinvested to “enhance our students’ experience on campus.”

The two accommodations currently on the market are Kitchener House and David Horne House, both located in the south of the city near King’s Campus.

This comes after staff voted to strike during the university’s Welcome Week, from September 8th to September 12th.

Members of the University College Union (UCU) which represents higher education staff voted in favour of industrial action over concerns that the university would implement mandatory dismissals to plug a funding gap of an estimated £140 million.

Previous action was taken in June, and staff also voted to undertake other action including working to time and refusing to cover other positions when staff take sick of holiday leave.

Throughout the summer the university has offered voluntary redundancy, which had been accepted by around 350 staff as of June 4th.

Responding to claims that the sale could be used to alleviate financial concerns at the university, a spokesperson said: “Edinburgh remains a desirable location of choice for students worldwide, with demand for competitive, quality accommodation options consistent across the city.

“We are committed to ensuring our accommodation offering is modern and sustainable so we can provide the best experience for our students and regularly evaluate our accommodation portfolio to ensure that it meets their needs.

“As part of this process, we have taken the strategic decision to bring these properties to market.

“This decision is not connected to the wider financial challenges currently faced by the university.

“The sale of these properties reflects our residential accommodation strategy, which is focused on investing in modern accommodation that provides the best possible experience for our students.

“Any profits from the sale will be reinvested in the university, including supporting ongoing work to enhance our students’ experience on campus.”

The two properties are located in the south of the city, near to Cameron Toll shopping centre, offering great bus links to the city centre and Main Campus. A future southwards tram extension is also likely.

Property advisor CBRE said it had been appointed by the university to bring the properties to market.

Consisting of four townhouses, David Horn House and Kitchener House comprise 48 and 60 student beds respectively.

Property experts said the buildings have a “solid track record” of student occupancy, reflecting consistent demand in a sought-after location, offering potential for investors to either refurbish and retain them for student use, or explore alternative uses, subject to consents.

Damien Toner, director of estates at the University of Edinburgh, said: “Edinburgh remains a highly desirable location of choice for students, residents and visitors alike, with demand for competitive accommodation options consistent across the city.

“Given their size, character and condition, these sites offer a unique opportunity for developers in a sought-after location, and we are pleased to be working with CBRE to explore the market potential.”

Steven Hendry, a director in CBRE’s investment property team in Edinburgh, said: “We are pleased to be working with the University of Edinburgh on this important instruction.

“These are two distinctive assets in a highly sought-after part of the city, offering both immediate student accommodation use, and clear potential for repositioning.

“With strong demand in Edinburgh’s student market and the excellent proximity to King’s Buildings, we expect these properties will attract strong interest from a wide range of investors.”

Sophia Woodman, UCU branch president at the university, said: “Staff want a sustainable future for the university as much as anybody and we want to work with senior management to end this dispute.

“But we’re clear that the use of compulsory redundancies is unacceptable. With the resources and reserves held by the university it can easily afford to rule out sacking staff.”

The properties will be marketed on an individual and combined basis, and a price tag has not been released.

The UCU has been approached for comment.

Featured image via Google Maps.