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Merchant City BTR trailblazer nears completion

April 18 2019

Merchant City BTR trailblazer nears completion

Kelvin Properties are on track to deliver 36 build to rent apartments at Candleriggs Court in Glasgow’s Merchant City with refurbishment expected to complete toward the end of May.

The £10m build is to be managed by Tay Letting and meet an accelerating shift to repopulate the city centre, offering a mix of one, two and three bedroom flats with underground parking and communal gardens.

Marketed as being among the first such developments to complete in Glasgow the development signals a belated embrace of a sector which has grown markedly across southern cities.

Stuart Patrick, chief executive of Glasgow Chamber of Commerce commented: “It’s encouraging to see a continued pipeline of investment into Glasgow’s build to rent property market, a significant focus for the city’s overall strategic development.

“The creation of quality housing in prime locations supports round-the-clock city-centre footfall while helping to retain a competitive edge when attracting skilled workers.”

Completion comes as revised plans are being worked up for a significant mixed-used development at Candleriggs Quarter.

A showhome is already available for viewing
A showhome is already available for viewing
Council policy now favours city centre residential construction
Council policy now favours city centre residential construction


Fat Bloke on Tour
#1 Posted by Fat Bloke on Tour on 18 Apr 2019 at 12:18 PM
Interesting numbers coming out of this -- £10mill build for 36 flats.

Mix of one, two and three bedrooms.

Average build cost = £280K.
Two bed rent advertised as £1200 pcm.
Would appear to be an above average unit.

Bare numbers point to a return of 5.1%'ish.
Is this the current state of the market and the economy?
Or is the service charge angle been turned up to the max?

Finally is a VAT game being played?

Seemingly a refurb job that would incur VAT -- better to rent out with a VAT element in the monthly cost to reclaim back the VAT portion of the build cost?

All in all it seems more a Barclays Bank style project than a Building Society inspired slice of popular capitalism.

No matter the finances at least it is a bit of filler that the area needs -- come back Goldbergs your city needs you.

jimbob tanktop
#2 Posted by jimbob tanktop on 19 Apr 2019 at 15:50 PM
I wouldn't bet on them achieving £1200 pcm. Rightmove is full of properties marketed by this agency at a ridiculously over-reaching price, only to be reduced once or twice until it's finally let.

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