Candleriggs Development 2 Limited – a joint venture between the Drum Property Group and Stamford Property Investments – has secured £81.5m forward funding from Legal & General to deliver a major 346 apartment Build to Rent scheme in Glasgow.
The funding is for the first phase of a £300m scheme to transform Candleriggs Square in Glasgow. The deal is a big milestone in the much-anticipated regeneration of the 3.6-acre site lying at the heart of the Merchant City area.
“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.
“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.”Graeme Bone, Managing Director, Drum Property Group
A ‘Planning Application in Principle’ was granted for the entire site in May 2020 by Glasgow City Council which included a detailed application for the first development phase. This phase includes a new 500-room hotel and leisure complex owned and operated by the Student Hotel Group – and once complete, it will be Scotland’s largest hotel. Construction of the hotel will begin in early 2021.
Legal & General will forward fund Candleriggs Development 2 – to deliver the Build to Rent scheme, which is 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.
“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.”Dan Batterton, Head of BTR, LGIM Real Assets
Along with the 346 Build to Rent 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 onto Glasgow’s Trongate, giving direct access to a communal landscaped courtyard on the first-floor level, and a range of roof terraces will provide views across the city.