£81.5m funding deal to jumpstart Glasgow's Candleriggs Square
September 30 2020
Glasgow's Candleriggs Square development has taken a significant step forward with Legal & General agreeing to forward fund the Build-to-Rent (BTR) aspect of the scheme.
Drum Property Group and Stamford Property Investments have agreed an £81.5m deal with the financial services firm to deliver 346 rental apartments on the 3.6 acre Merchant City gap site.
The funding will enable the BTR element of the wider masterplan to proceed, for which a detailed planning application for a 17-storey tower has now been submitted. Designed by Stallan-Brand this will include a mix of ground-floor retail and commercial units, as well as new public realm and an entrance lobby opening directly onto the Trongate that will provide access to a first-floor landscaped courtyard.
Graeme Bone, managing director of Drum Property Group, said. “The L&G deal is testament to the unwavering commitment and confidence we have placed in both the Candleriggs Square site and Glasgow city centre during these most testing of times.
“It represents a significant step forward in the long-awaited regeneration of one Glasgow’s most prominent gap sites, driving forward the evolution of Candleriggs Square which has quickly established itself as one of Scotland’s largest and most important commercial and residential development sites."
Dan Batterton, head of BTR at LGIM Real Assets, added: “ Glasgow faces a significant undersupply of high-quality rental accommodation and, within the coming decade, will see its population increase as it continues to establish itself as one of the UK’s best cities in which to live and work. The site is located in a prime location and, alongside Legal & General’s Buchanan Wharf scheme, is the city’s only high-density build to rent product.
“Through our BTR Fund, we want to create the best possible experience for renters, providing high-speed digital connectivity, dedicated workspace and exercise facilities, all of which are essential in a post-covid world.”
Planning in principle has already been granted for the entire site; including detailed plans for a 500-bed hotel and leisure complex operated by The Student Hotel Group which is expected to begin construction early next year.
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