Apache Capital Partners and Harrison Street’s UK multifamily housing platform is funding a £215m (€247m) build-to-rent (BTR) development in Edinburgh.

The joint venture is funding the Springside scheme, which will include 476 new homes alongside 48 existing, fully-leased studio, one- and two-bedroom apartments. Work is expected to begin later this year, with completion expected in 2022.

The latest investment is the fourth project in the BTR joint venture between Apache and Harrison Street, launched in 2018 and includes investment from NFU Mutual.

Apache and Moda Living bought the Edinburgh development site in March 2017. Springside will be developed and operated by Moda Living

John Dunkerley, CEO and co-founder of Apache Capital Partners said: ”We are committed to delivering and expanding our build-to-rent pipeline with both Harrison Street and Moda Living despite the near-term disruption being caused by COVID-19.

“There remains a fundamental mismatch between supply and demand for high quality purpose-built rental housing in the UK and for investors seeking long-term, steady income streams from assets with defensive, counter-cyclical qualities, build-to-rent remains highly attractive as a sector.”

Robert Mathias, senior managing director and head of international business for Harrison Street, said: “Edinburgh is a thriving city with a strong economy focused on the financial and technology sectors, a highly skilled workforce and vibrant cultural attractions.

“However, Edinburgh suffers from a significant lack of viable residential rental housing options given there is virtually no purpose-built accommodations in a city where nearly a quarter of the population are renters.

Johnny Caddick, managing director at Moda Living, said: “The resilience of residential property as an asset class has never been in doubt, but in recent weeks we’ve learned just how much our customers have valued the ability to work, exercise and prioritise their mental and physical wellbeing without leaving home.

“The continued confidence of Apache and Harrison Street in our branded platform underlines the defensive qualities of build-to-rent and we look forward to raising the bar for renting in Scotland.”