Developers have formally lodged a planning application with Dundee City Council to demolish the long‑running Keiller Centre and replace the shopping complex with a six‑storey block containing 318 student bedrooms and two commercial units.
What developers say
The application follows earlier proposals announced in December 2024 and two public consultations held in early 2025. Ownership of the centre passed to Dundee 1881 Limited in April 2024, a company which described the building as "failing both financially and structurally" when it acquired the site.
"failing both financially and structurally"
In their supporting statement to the council, the applicants say replacing the declining shopping arcade with student accommodation will help restore the "vitality and viability" of retail services in the city centre. The scheme is being promoted as the first phase of a broader "Keiller Quarter" combining commercial space and student housing.
Design and local impact
The proposed block would rise to six storeys and include two commercial units at ground level. Developers argue the new homes would offer an economic boost to the city centre, including a potential uplift in summer tourist accommodation when student rooms could be let to visitors, supporting shops and attractions.
- Scale: 318 student bedrooms
- Height: six storeys
- Commercial provision: two units at ground floor
Site history and sales
The Keiller Shopping Centre dates from 1979 and stands on the former site of the Keiller confectionery factory, which closed in 1971. The arcade ceased trading in 2025 after years of decline. The property has changed hands several times in recent decades.
| Year | Sale price |
|---|---|
| 2004 | £3.75m |
| 2005 | £5.1m |
| 2024 | £750,000 |
Those figures underline how the site's value and fortunes have shifted over time as the retail landscape changed.
Questions for council and community
As the application is considered by Dundee City Council, local stakeholders will weigh potential benefits against concerns that typically accompany city‑centre student housing: impact on neighbourhood amenity, demand for services and how new ground‑floor commercial units will be let and occupied. The developers claim the scheme will support nearby retail and tourism, but final decisions on planning consent, conditions and any community benefits rest with the council.
Public consultation stages have already taken place, and the planning process will include the opportunity for further representations from residents, business owners and other consultees before a determination is made.
Any alterations to the proposal — including changes to scale, design or the balance of uses — would be set out in planning papers published by the council as the application progresses.
