AN £81.5 million deal has been put together to fund a 346-apartment build-to-rent (BTR) scheme at Candleriggs Square, Glasgow.
Candleriggs Development 2 Limited, the joint venture between Drum Property Group and Stamford Property Investments, has come to the agreement with Legal & General.
The deal marks the next significant step of the much-anticipated regeneration of the 3.6-acre Candleriggs Square at the heart of the Merchant City.
Planning permission in principle was given for the entire site by Glasgow City Council in May 2020 along with consent for a detailed application for what will become Scotland’s largest hotel — a 500-room complex to owned and operated by the pioneering hotel brand, the Student Hotel Group.
Now Legal & General will forward fund Candleriggs Development 2 to deliver the apartment complex, designed to meet the growing demand for affordable and high-quality rental accommodation across Scotland and the UK.
The joint venture company has now submitted a detailed planning application to Glasgow City Council to develop the residential complex.
As well as the 346 apartments, the 17-storey, 325,000 sq. ft. building will include a range of retail and commercial units at ground floor level creating a vibrant and attractive public realm.
A generous entrance lobby will open on to Glasgow’s Trongate, and there will be a communal landscaped courtyard at first-floor level, while a range of roof terraces will provide spectacular views across the city.
Drum and Stamford’s joint venture first launched the ambitious £300million plan to transform Candleriggs Square when the site was bought in March 2019.
Other elements of the high-quality mixed-use scheme include offices, restaurants and local amenities, landscaped open spaces and walkways with a new public square at its heart.
Construction of the hotel will begin in early 2021.
Graeme Bone, managing director of Drum Property Group, welcomed the L&G deal as a much-needed catalyst, heralding an exciting future for the city centre as it starts to recover following months of lockdown.
He 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 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.”
Dan Batterton, head of BTR at LGIM Real Assets, added: “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 in which 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.”