Queens Cross Housing Association has gained £40m funding from M&G Investments to transform the Hamiltonhill area of Glasgow into an “urban suburb”.
The scheme will comprise 600 new homes, half of which will be affordable homes for rent. The remaining 300 will be new-build homes for sale.
The housing association is now in talks with developers to advance the project, which also includes a new park and green space with community and commercial developments.
Work will start on-site in the spring with initial ground and drainage works.
Shona Stephen, chief executive of Queens Cross, said the deal marked the association’s first venture with an asset management company.
The funding will allow the association to restructure existing debt, freeing up more capital to explore other development opportunities in the area.
Mark Davie, head of social housing at M&G Investments, said: “This is our third deal with a housing association in Scotland, where good quality affordable homes continue to be in short supply.
“This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property.
“M&G has now invested over £6bn in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”
NatWest Markets acted as private placement agent on the financing for Queens Cross.
Glasgow City Council will also be a key partner and funder, delivering the project as part of the Glasgow Canal Regeneration Partnership area.
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