The seemingly endless procession of new Build to Rent developments is continuing apace, with one of the biggest players in this still youthful market forward-funding a 346-home tower in Glasgow.
LGIM Real Assets announced, on behalf of its Build to Rent (BTR) Fund, the forward-funding of an £81.5 million mixed-use regeneration scheme in Candleriggs Square, Glasgow.
Once complete, the scheme will deliver 346 BTR homes, 17 parking spaces and around 12,800 sq ft of commercial space, helping to meet the city’s demand for high-quality, flexible rental accommodation.
Legal & General’s investment and real estate management arm, which entered the BTR sector in 2016, currently owns and operates 15 schemes in 11 UK cities, consisting of more than 5,000 homes.
Candleriggs Square will mark its BTR Fund’s second investment in Glasgow, having last year committed to the forward-funding of a 324-home BTR scheme at neighbouring Buchanan Wharf. Local developer Drum Property Group has been used to develop both projects.
The 17-storey tower at Candleriggs Square will be made up of a mixture of studio, one, two and three-bedroom properties, including six duplex penthouse apartments.
In line with other schemes in Legal & General’s BTR portfolio, the building will include a dining space, gym, business lounge and games room.
LGIM Real Assets’ £1.9 billion BTR Fund has several ‘landmark’ projects currently under development, including a 1,000-home scheme in Wandsworth and a 200-home scheme in Brighton.
The Fund says it is currently undertaking an international equity-raising programme to help meet construction output in line with the UK’s requirements for high-quality rental accommodation.
Dan Batterton, head of BTR at LGIM Real Assets, said: “Glasgow faces a significant undersupply of high-quality rental accommodation and, within the coming decade, will see its population increase as it continues to establish itself as one of the UK’s best cities to live and work. The site is located in a prime location and, alongside Legal & General’s Buchanan Wharf scheme, is the city’s only high-density build to rent product.”
He added: “Through our BTR Fund we want to create the best possible experience for renters, providing high-speed digital connectivity, dedicated workspace and exercise facilities, all of which are essential in a post-covid world.”
Graeme Bone, managing director of Drum Property Group, said the Legal & General deal is ‘testament to the unwavering commitment and confidence’ placed in both the Candleriggs Square site and Glasgow city centre, ‘even during these most testing of times’.
He added: “It represents a significant step forward in the long-awaited regeneration of one of Glasgow’s most prominent gap sites, driving forward the evolution of Candleriggs Square which has quickly established itself as one of Scotland’s largest and most important commercial and residential development sites.”