Edinburgh-based investor Ediston Real Estate Group has launched a house building arm. The new business, Ediston Homes, will primarily target mid-market homes in Scotland’s central belt.
Harry O’Donnell, the former managing director of Miller Homes, has been hired as chairman and Peter Brogan, the former managing director of Muir Homes, as managing director. The board will also include Ediston development director Andy McKinlay and finance director Rankin Laing.
Ediston founder Danny O’Neill will remain focused on expanding its listed REIT, Ediston Property Investment Company.
Ediston Homes is already close to starting on site on its first project, The Fruitmarket in Chesser, Edinburgh, which will consist of 34 semi-detached and terraced houses as well as 80 flats available for rent through Edinburgh’s National Housing Trust initiative.
The project is being funded using Ediston’s own balance sheet and a £5m loan from Bank of Scotland.
The group said it would target only Scotland initially because demand and lack of supply in the country was acute.
Ediston Homes’ rental model will focus on key-worker housing and is aiming to invest £100m into the social and mid-market rental sector in the next four years.
O’Neill said: “Without change the housing shortage will get worse. I am hoping we can aid the flow of institutional money into the sector.”
Ediston also manages funds and joint ventures alongside investors including Europa Capital and the Strathclyde Pension Fund. It has invested £203m in the UK this year.
