Legal & General has unveiled its first Build to Rent (BTR) scheme in Scotland to help meet the increasing demand for affordable, quality rental accommodation across the UK.
It will provide funds for Drum Property Group to deliver 324 apartments within Glasgow’s new Buchanan Wharf waterside regeneration area, which will also house the new Northern European hub of Barclays Bank.
Consisting of two 18 storey towers, current design iterations include dining space, a gym, a residents’ lounge and a games room.
Buchanan Wharf, which overlooks the River Clyde, will also offer a 4,250 sq ft communal roof terrace and is walking distance from Glasgow Central Station and the International Financial Services District, linked by the Tradeston Bridge.
Legal & General has identified Glasgow as a key target for regeneration. Over the last 10 years, the city has seen particularly low levels of residential development, compared with other major cities.
Just 517 new homes were completed in 2017, falling substantially short of the 2,500 new homes needed per annum, according to Glasgow City Council.
Dan Batterton, Head of Build To Rent at LGIM Real Assets, said: “Glasgow has seen very low levels of residential development over the last decade. This acute supply and demand imbalance has made it an important target for us, demonstrating our commitment to quality asset selection, with sites cherry-picked by assessing needs-based demand to provide long-term, stabilised cashflows for investors.
“With Glasgow predicted to continue to see notable population growth, this latest acquisition is another great example of Legal & General investing in an area with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive long term socioeconomic impact, delivering much needed homes.”
Scotland, and Glasgow in particular, has been a key target for Legal & General as part of it Future Cities initiative, according to “Paul Miller, MD principal investing at Legal & General Capital.
He said: “We are excited to be bringing a long term sustainable rental scheme to the area to meet the demands of this vibrant and fast-growing city.”