Hundreds of students in Dundee have been left shocked by the collapse of the company that owns their £20 million flats.
Opal 1, which opened less than three years ago, is a 498-bedroom block on Parker Street and most of its occupants study at nearby Abertay University.
It is owned by Opal Commercial Investments, one of four companies owning properties across the UK that have been placed in administration.
Their parent, Manchester-based Opal Group, has been struggling to refinance £886 million of debt with a syndicate of 14 lenders.
Joint administrator Sam Woodward, of Ernst and Young, said: “We are keen to stress that it is business as usual for the portfolio.
“Tenants should be assured that any rents paid in advance will be honoured by the administrators. The managing agents will continue to operate the properties and residents should continue to enjoy the accommodation and facilities on offer.”
Letters have been sent out to students advising them to continue paying their rent as usual, although people paying by direct debit or standing order may have to sign new arrangements.
The letters also say the administrators expect all cleaning, maintenance and security services to operate normally.
A separate letter has been sent to the staff, who are employed by Opal Group, which is not in administration, who have been told to continue working while the administrators are in talks to ensure they are paid normally.
The administrators are also reviewing contracts with suppliers. Any suppliers owed money by Opal Commercial Investments have been advised to put in a claim, although it is not known yet if there will be any money for creditors.
It will take up to eight weeks for the administrators to put together a detailed report on the financial position of the companies.
William Mohieddeen, president of the University of Abertay Dundee Students’ Association (UADSA), said: “Following this announcement, we will monitor closely to ensure students currently residing in Opal 1 Dundee aren’t adversely affected.
“Students who are concerned about this are strongly advised to speak to the UADSA. This is an example of the broader issues that students face in securing fair and affordable accommodation.
“We will seek to work with the council, city landlords and with Abertay University to ensure a solution is found that protects students from uncertainty and that they are not left out of pocket.”
A spokesman for Abertay said: “The university has been informed of the situation by the administrators and we welcome their commitment to maintaining staffing levels at the various properties and their promise that residents will not be affected.
“We will be keeping in close touch with the administrators to monitor developments closely in the interests of our students.”
The university was initially behind plans for the Parker Street flats. After it received planning permission for the 10-storey building it sold the development on to Opal Group.
The building was completed in 2010 and features flats and studio apartments offering broadband, common rooms with satellite TV, CCTV security and a round-the-clock staff presence.
Opal Commercial Investments and its sister companies own 20 sites providing student accommodation and professional lets to 7,200 tenants in Bradford, Huddersfield, Leeds, Leicester, Liverpool, London, Manchester and Wolverhampton.
Opal 1 is the only site in Scotland affected by the administration.