Heimstaden Bostad AB has agreed to fund and acquire PLATFORM_’s residential project in Edinburgh for £124.4m (SEK 1.5bn) – and a build contract was placed simultaneously. PLATFORM_ assembled the site in 2019 and 2020 from three separate ownerships and subsequently obtained planning permission for 464 residential apartments.
Burness Paull acted as solicitors for Heimstaden Bostad on this transaction. PLATFORM_ was represented by Womble Bond Dickinson and Addleshaw Goddard. The contractor is Graham (John Graham Construction).
The transaction is structured as a turnkey forward funded project to ensure Heimstaden Bostad carries no direct development risk. PLATFORM_ will act as developer on the project and will be retained as Asset Manager following completion of the development, which is scheduled for mid-2024. This is the 9th Build to Rent development commenced by PLATFORM_ as part of a wider portfolio and pipeline with a GDV of over £1bn across over 3,750 homes.
“We’re delighted to be partnering with Heimstaden and contributing our deep experience of Build to Rent to support their continued UK expansion. We’re looking forward to opening our Edinburgh scheme in 2024 to provide much needed housing in one of the most attractive cities in the UK.”Jean-Marc Vandevivere, CEO, PLATFORM_
The development is in the Bonnington regeneration area, 1.2 miles north of Edinburgh’s city centre, to which it will be connected by tram from 2023. A quarter of the predominantly two- and three- bedroom homes will be offered as intermediate housing at discounts of around 40% to open market rents.
The scheme will provide 325,000 sq. ft of lettable space and amenities include a reception and concierge desk, gym, large co-working area and rooftop terraces with views over the Water of Leith and the neighbouring Pilrig Park.
The Bonnington Road development will include PV panels installed extensively and Heimstaden Bostad will continuously investigate opportunities to use renewable sources of energy and water supply to support the company’s targets and Edinburgh’s 2030 net zero carbon target. Heimstaden Bostad has set sustainability targets to reduce its greenhouse gas emissions in line with the Paris Agreement to limit global warming to 1.5°C by 2050.
“Edinburgh’s strong fundamentals make this acquisition a natural next step for us in providing high-quality and affordable homes to our customers, in line with our strategy to expand our presence in the UK market.”Christian Birrell, Head of Investment, UK, Heimstaden Bostad