Legal & General has agreed an £81.5m forward funding deal for 346 build-to-rent to flats at Drum Property Group and Stamford Property Investments’ Candleriggs Square in Glasgow.
The joint venture has submitted detailed plans for the development on the 3.6-acre site at the heart of the Merchant City area.
The 17-storey tower will comprise 325,000 sq ft of development with retail and commercial on the ground floor, a large lobby and public realm.
Drum and Stamford’s joint venture bought the site in March 2019. The wider development includes offices, hotels, restaurants and local amenities and a new public square, which has been granted planning in principle.
The first phase comprises a 500-bedroom hotel and leisure complex to be run by TSH Group. It will be Scotland’s largest hotel and construction will begin early next year.
L&G’s investment follows an £85m deal last year, again with Drum Property, to acquire 342 flats at Buchanan Wharf, its first scheme in Scotland.
Dan Batterton, head of BTR at LGIM Real Assets, said: “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.”
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