Investment fund completes £31m build-to-rent development in Glasgow
Edmond de Rothschild Real Estate Investment Management (REIM) has completed a £31 million build-to-rent development in Glasgow, the first in Scotland for its £545m UK residential investment fund.
Located on Minerva Street, adjacent to Exhibition Centre Station, the G3 Square development provides 113 apartments for rent. Energy for the development is supplied via an innovative community heating and energy centre to supply cost-effective and sustainable heat and power.
Drum Property Group acted as development manager for both EdR REIM and its residential investment fund at G3 Square, having previously built and sold the first phase of 108 apartments in November 2021.
The development was part-funded by a £12m facility provided by Secure Trust Bank, which is the third facility from the bank for Edmond de Rothschild Residential Investment Fund UK’s build-to-rent development programme.
The completion of G3 Square follows those of Saffron Court in Nottingham, Wellington Quarter and Merlin Wharf in Leicester, Regent’s Plaza in Newcastle and Charolais Gardens in Rugby. The fund has five further developments under construction in Birmingham, Warrington, Nottingham, Gateshead and Edinburgh. The 11 developments, when completed, will provide 2,640 apartments with 4,000 tenants and a gross development value of £545m.
The Edmond de Rothschild Residential Investment Fund UK was launched in August 2018 and secured £320m of equity from German institutional investors. It aims to regenerate or repurpose brownfield urban sites with the provision of new build housing.
James Whidborne, head of residential fund management UK at Edmond de Rothschild REIM, said: “G3 Square is an excellent first development for the fund in Scotland. Glasgow is the fourth largest city in the UK, with exceptionally strong demand for homes to rent. In line with strategy for the fund, we are offering high-quality rental accommodation at affordable levels, and we quickly expect to achieve full occupancy.”
Zoe Innes, head of lettings, residential UK, at Edmond de Rothschild REIM, said: “We’re really excited to be launching our first scheme in Scotland. The lettings market in Glasgow is very strong and Finnieston is one of its most sought-after areas. Its close proximity to the financial district, Kelvingrove Park and the exhibition centre make it an ideal location for us.”