Goodstone Living agreed £67m of debt financing with Natwest for the development of its first Build to Rent scheme in Edinburgh, Scotland. Jones Day acted for Goodstone Living and Taylor Wessing acted for Natwest.
Offering panoramic views, the waterfront scheme – branded as Dockside – will deliver at least 338 new homes. Amenities include a rooftop lounge and dining space, co-working areas, fitness centre, and one acre of public realm space to promote resident and public wellbeing. Construction of the scheme is expected to start in Q1 2023.
“The size, scale and timing of this financing package underscores how defensive Build to Rent has become as an asset class. We continue to be attracted to Edinburgh’s growing rental population and falling supply, which is creating enhanced demand for our high-quality, purpose-built and professionally managed communities.
“Natwest’s recognition of the need to invest additional capital to exceed current building regulations has been very welcome and we are committed to working in partnership with them to deliver not only a great project for our customers, but a fantastic new community hub for Leith.”
Carl White, Investment Director, Goodstone Living
The project was acquired last year. Goodstone Living’s specialist development team has re-engineered the project to fully-electrify the scheme with an air source heat pump in each apartment – future proofing the scheme for when the electricity supply grid is decarbonised. This major change will help reduce operational carbon emissions by up to 55% compared with the standard set out in Part L of the Building Regulations.
“We have long been supportive of Build to Rent for its structural characteristics, which have proven themselves throughout the last few years, as schemes have remained full and continued to attract investment. It is great to support a project seeking to not only reduce the severe demand supply imbalance in Edinburgh, but also to decarbonise both the construction and the operation of over 300 new homes for rent – each of which will have an air source heat pump.”
Michael Goode, Director, Build to Rent Lead, Natwest
Goodstone Living are also targeting a 30% reduction against RIBA’s 2030 Climate Challenge embodied carbon benchmark, with key measures including the replacement of cement with Ground Granulated Blast-furnace Slag, and the use of locally manufactured materials to minimise transport distances to ensure reduced carbon emissions.
The Dockside project also demonstrates the company’s commitment to social value, by creating 60 local jobs and a targeted £2m worth of socio-economic benefits for the local community over two and a half years. Plans are in place to enable community groups and enterprises to use some of the available commercial space. Other benefits including access to learning, work experience, and training opportunities for young people and those from under-represented backgrounds.
