Apache Capital and Harrison Street joint venture funds Moda’s landmark Edinburgh Build to Rent development

In their fourth joint venture, Apache Capital Partners and Harrison Street fund Moda’s Build to Rent scheme in Central Edinburgh, as they continue to raise the bar of renting.

Springside Build to Rent scheme - Moda | Apache Capital | Harrison Street | BTR News
Springside Build to Rent scheme.

The Build to Rent scheme – Springside in Edinburgh will create 476 additional homes alongside the existing 48 fully leased studio, one- and two-bedroom apartments.

The scheme includes 15,000 sq. ft. of ground-floor retail and leisure space, which will be centred around the new landscaped public squares. It will create a new ‘urban village’ in the heart of Edinburgh, with a year-long calendar of events and activities for both residents and the wider public to enjoy.

Internal amenities – across 13,000 sq. ft. of space – include roof top terraces, communal lounges, health and wellbeing facilities, fully managed communal gardens, and a private dining room with unique views of Edinburgh Castle.

Exterior apartment at Springside Build to Rent scheme - Moda Living | Apache Capital | BTR News
Exterior apartment at Springside Build to Rent scheme.

The £215m GDV Build to Rent scheme is in Edinburgh’s bustling Fountainbridge district. It’s in easy access to shops, public transport and entertainment, and some of the city’s largest employers including Ernst & Young, PricewaterhouseCoopers and BlackRock.

“Edinburgh is a thriving city with a strong economy focused on the financial and technology sectors, a highly skilled workforce and vibrant cultural attractions. However, Edinburgh suffers from a significant lack of viable residential rental housing options given there is virtually no purpose-built accommodations in a city where nearly a quarter of the population are renters.

“We are thrilled to further our partnership with Apache Capital to develop Springside, which will provide much needed attractive rental options for the growing number of people in the UK choosing to rent.”

Robert Mathias, Senior Managing Director and Head of International Business, Harrison Street

The investment, which closed in February 2020, is the fourth project in the Build to Rent joint venture between Apache Capital Partners and Harrison Street, launched in 2018. It includes investment from NFU Mutual to deliver high quality Build to Rent projects in core cities across the UK.

“We are committed to delivering and expanding our Build to Rent pipeline with both Harrison Street and Moda Living despite the near-term disruption being caused by Covid-19.  

“There remains a fundamental mismatch between supply and demand for high quality purpose-built rental housing in the UK and for investors seeking long-term, steady income streams from assets with defensive, counter-cyclical qualities, Build to Rent remains highly attractive as a sector.”

John Dunkerley, CEO and Co-founder, Apache Capital Partners

Apache Capital and Moda Living purchased the Springside site back in March 2017 from Grosvenor Great Britain and Ireland – who selected them because of their Build to Rent expertise. The landmark development will be delivered and operated by Moda Living, with works onsite expected to begin later in the year. Completion is expected in 2022.

“The resilience of residential property as an asset class has never been in doubt, but in recent weeks we’ve learned just how much our customers have valued the ability to work, exercise and prioritise their mental and physical wellbeing without leaving home. 

“The continued confidence of Apache and Harrison Street in our branded platform underlines the defensive qualities of Build to Rent, and we look forward to raising the bar for renting in Scotland.”

Johnny Caddick, Managing Director, Moda Living