Contracts exchanged on twin build-to-rent towers in Glasgow
Construction work on more than 300 build-to-rent apartments in Glasgow city centre is set to start by the end of this year after Legal & General exchanged contracts on the project.
The pensions and investment firm will forward fund Drum Property Group to deliver 324 apartments within Glasgow’s new Buchanan Wharf waterside regeneration area, which will also house the new Northern European hub of Barclays Bank.
Consisting of two 18 storey towers, current design iterations include dining space, a gym, a residents’ lounge and a games room. Buchanan Wharf, which overlooks the River Clyde, will also offer a 4,250 sq ft communal roof terrace.
Paul Miller, MD principal investing at Legal & General Capital, said: “We are delighted to be making our first build-to-rent investment in Scotland as part of our ambition to tackle the housing shortage all across the UK. Scotland, and Glasgow in particular, has been a key target for Legal & General as part of our Future Cities initiative. We are excited to be bringing a long term sustainable rental scheme to the area to meet the demands of this vibrant and fast-growing city.”
Buchanan Wharf represents Legal & General’s fourth acquisition in Glasgow over the last 12 months. Last year, Legal & General began development of a new 160 room hotel; acquired the Scottish court and tribunal building, Atlantic Quay 3; and forward funded the Atlantic Square Development to provide a major new UK Government hub.
Glasgow City Council approved another build-to-rent property development in the city last week when planning permission was granted for a £100 million project to build nearly 500 apartments at Clydeside Central Quay.
Buchanan Wharf has been purchased by co-investors Legal & General Capital and PGGM, as well as additional pension fund capital raised by LGIM Real Assets through its open-ended build-to-rent fund. This latest scheme will bring Legal & General’s build-to-rent portfolio to 3,700 homes across the country, with ambitions to have 6,000 in planning, development or operation by the end of this year.
Dan Batterton, head of build-to-rent at LGIM Real Assets, said: “Glasgow has seen very low levels of residential development over the last decade. This acute supply and demand imbalance has made it an important target for us, demonstrating our commitment to quality asset selection, with sites cherry-picked by assessing needs-based demand to provide long-term, stabilised cashflows for investors.
“With Glasgow predicted to continue to see notable population growth, this latest acquisition is another great example of Legal & General investing in an area with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive long term socioeconomic impact, delivering much needed homes.”