LGIM forward funds £81.5m regen scheme in Glasgow
Legal & General Investment Management (LGIM) Real Assets has revealed the forward funding of an £81.5m mixed-use regeneration scheme in Glasgow on behalf of its Build to Rent (BTR) Fund.
The scheme will deliver 346 BTR homes, 17 parking spaces and c.12,800 sq ft of commercial space.
LGIM Real Assets, which entered the BTR sector in 2016, currently owns and operates 15 schemes in 11 UK cities, including over 5,000 homes.
Candleriggs Square will mark its second investment in Glasgow, last year having committed to the forward funding of a 324-home BTR scheme at neighbouring Buchanan Wharf, again using local developer Drum Property Group to deliver the project.
The 17-storey tower at Candleriggs Square will comprise a mixture of studio, one, two and three-bedroom properties, including six duplex penthouse apartments.
LGIM Real Assets’ £1.9bn BTR Fund has several landmark projects currently under development, including a 1,000-home scheme in Wandsworth, London, and a 200-home scheme in Brighton.
The fund is currently undertaking an international equity raising programme to help meet construction output in line with UK’s requirements for high-quality rental accommodation.
The scheme will make up part of a £300m Drum Property Group plan to transform Candleriggs Square, a 3.6 acre regeneration area which will provide a mix of high-quality homes, offices, hotels, restaurants, amenities and landscaped open space.
Approval was granted for a planning application in principle for Candleriggs Square by Glasgow City Council in May 2020.
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.
“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 L&G deal is testament to the unwavering commitment and confidence we have placed in both the Candleriggs Square site and Glasgow city centre, even during these most testing of times.
“It represents a significant step forward in the long-awaited regeneration of one 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.
“This will be a huge boost to the area and to local businesses, who are in desperate need of some good news right now.
“We can now look forward to a once-in-a-generation opportunity to transform a very special area which has always been at the centre of Glasgow’s commercial and social development.”