A new buyer has been found for Aberdeen city centre student accommodation.
The future of Highgate, based in Fraser Street, was thrown into doubt when owners Alpha Homes (Leicester) Limited plunged into administration.
Paul Dounis and Gareth Harris of RSM Restructuring Advisory were appointed joint administrators in December 2021.
Now, after almost two years of uncertainty, the property, consisting of 30 bedrooms, has been bought by AP Apartments Limited, a provider of serviced accommodation across the UK.
The value of the sale is undisclosed.
Unpaid rent one of the factors which led to administration
The decision to appoint administrators was made by a group of investors in the Highgate development, following a build-up of unpaid rent due under various lease agreements..
During the administration, the company continued to trade, with student tenants in place.
It had no registered employees.
The proceeds of the sale were distributed to the joint owners and investors following settlement, while ensuring continuity of service for its residents.
Mr Dounis said: “Facilitating the sale of Alpha Homes (Leicester) Limited has been a complex process, and we wanted to ensure minimal disruption to the residents and their living situation.
“I am pleased that we have agreed a sale between investors and AP Apartments Limited, securing the future of the site as a student accommodation provider.”
Refurbish the student accommodation
Asaad Tariq from AP Apartments said the aim was to turn the property into “top-tier student accommodation”.
He said: “Following the completion of the intricate transaction, our current focus has now shifted to the undertaking of refurbishing and elevating the complex, with the goal of turning it into top-tier student accommodation that not only reflects positively on Aberdeen but also bolsters the local economy.
“The journey ahead for AP Apartments involves acquiring comparable buildings or parcels of land promptly, as we are eager to expand our brand across Scotland.”