GLASGOW-based private equity firm Maven Capital Patners has generated a strong return on an investment in student accommodation in Dundee amid strong interest in the sector.

Maven said it has sold the Marketgait Apartments complex to the 90 North Real Estate Partners property firm for £9.5m, delivering a return of more than twice the money invested on behalf of clients.

The firm bought the building for £1.55m in April 2015. It completed a £5m refurbishment in time to open the 116-bedroom development to students for the 2016-17 academic year.

Investment director Colin Anderson said Maven had seen an opportunity to create a high quality, stylish studio product that did not previously exist in the Dundee market, working with student accommodation operator Collegiate AC.

The development, which lies between Dundee and Abertay universities, enjoyed 100 per cent occupancy last year and is fully let for the 2018/19 student year.

“By identifying the right assets and delivering what students want for an affordable rent, the purpose built student accommodation (PBSA) sector continues to offer excellent opportunities for institutional and overseas investors,” said Mr Anderson.

In August Maven and IP Investment Management sold a 257-bed complex on Edinburgh’s Gorgie Road to 90 North Real Estate Partners and Malaysian fund Kumpulan Wang Persaraan for £25.1m.

In 2015 Maven sold a 70-studio complex on Glasgow’s Bath Street to Empiric Student Property for £7.45m.

Empiric noted that year that there were 53,000 full-time students at five higher education establishments in Glasgow .