The freehold of the site was acquired from the City of Edinburgh Council by Crosslane Student Developments, part of the Crosslane Group, in December for £6.2 million.

Ogilvie Construction Limited is the main contractor having been engaged by Crosslane Student Developments in December 2015 to develop the site into a new, purpose-built, high specification, city centre scheme, comprising 44 studios and 193 cluster flat bedrooms ranging from three to nine beds. In addition, there will be high quality communal facilities including a common room, meeting space, gym and bike storage.

Commenting on the sale, Jon Stewart, director of Crosslane Student Developments, said: “Crosslane Student Developments identified the site at Lutton Place as a prime location for purpose-built student accommodation in Edinburgh. This partnership with USAF is consistent with the Crosslane strategy to deliver an outstanding pipeline of high quality new build student accommodation assets to the buoyant UK market and of delivering optimal returns to our investors. We continue to assess potential opportunities to further grow our successful student accommodation business in the UK and Edinburgh itself, a city with limited purpose-built student accommodation.”

David Faulkner, USAF fund director, said: “We are delighted to be working with Crosslane Student Developments to deliver this high quality development in Edinburgh. This new centrally located property will provide a safe and secure home for the increasing numbers of students attracted to this lively and historic city. Edinburgh continues to develop as a thriving university city, attracting students from across the UK and internationally. Students continue to be important contributors to the local economy and this development will help ease pressure on private residential housing in the area.”

Donald MacDonald, managing director, Ogilvie Construction, added: “We are delighted to have been awarded this project by Crosslane Student Developments.

“Our team has built up significant expertise in the student accommodation sector and the building will be completed to the highest modern construction standards.”

Completion of the scheme is due in summer 2017, in time for the 2017/18 academic year.