In January 2021, Moda’s Glasgow Build to Rent scheme – Holland Park – secured the backing of Apache Capital Partners and Harrison Street – a joint venture to fund the scheme. The two major investors have now secured £80m debt funding to finance the construction and stabilisation of Holland Park – which is on the site of the former Strathclyde Police headquarters in central Glasgow. The four-year debt facility has been provided by BentallGreenOak.
“Against the backdrop of pandemic-related uncertainty we are seeing across the real estate market, Build to Rent continues to perform well, and we are delighted to be supporting a best-in-class product that Apache Capital, Harrison Street and Moda Living have created.”Jim Blakemore, Global Head of Debt, BentallGreenOak
Apache Capital and Moda Living purchased the Holland Park site in October 2016 – a transaction which was one of the largest property deals to take place in Scotland after the Brexit result, marking a clear vote of confidence in the Scottish rental market.
The 433 home Holland Park development is the fifth investment to be brought forward in the Apache Capital and Harrison Street joint venture and will be developed and operated for the long term by Moda Living.
“We are pleased with the support from leading international real estate investment manager, BentallGreenOak to build upon our existing partnership. Harrison Street looks forward to completing Holland Park with world-class partners, Apache and Moda and continuing to identify new opportunities for top-tier Build to Rent assets with high-quality amenities in strategic markets.”Paul Bashir, Chief Executive Officer of Harrison Street’s European business
Demolition work is expected to complete in March 2021, with the first phase of works due to start on-site shortly – with completion expected in late 2023.
Holland Park will provide 15,000 sq ft of internal amenities – including communal lounges and health and wellbeing zones. There will also be 31,000 sq ft of outdoor amenity space, with the four apartments that form Holland Park to be set around a courtyard which will be open to the public during the day.
“The backing of a major global real estate player such as BentallGreenOak is another testament to the strength and quality of the Moda product as well as a statement of confidence in our ability to deliver.
“We look forward to starting on-site at Holland Park, transforming a well-known site in Glasgow city centre into a Next Generation Neighbourhood comprising high quality homes for rent alongside market-leading amenities.”Johnny Caddick, CEO, Moda Living
Residents will also have access to landscaped terraces overlooking the Glasgow skyline, and mixed commercial and leisure space on the ground floor – which include cafes, bars, restaurants and co-working facilities.
“The backing of one of the world’s leading real estate investment managers for our Holland Park scheme with Moda Living highlights lenders’ growing comfort with Build to Rent as an asset class.
“The leasing success at Angel Gardens, our flagship Build to Rent scheme with Moda Living has demonstrated the resiliency of our highly amenitised, highly serviced model and we anticipate strong consumer interest in Holland Park once it completes.”John Dunkerley, Co-founder and CEO, Apache Capital Partners