Apache Capital Partners and Harrison Street are co-funding a build-to-rent (BTR) housing development on the site of the Former Strathclyde Police headquarters in Glasgow as part of an ongoing UK-wide joint venture started in 2018.
The scheme, known as Holland Park, will see the site on Pitt Street replaced by four apartment blocks providing 433 homes for rent.
The development in centre of the Scottish city will be delivered and managed by Moda Living, which is also co-investing in the development.
Apache Capital and Moda Living purchased the Holland Park site in October 2016. Demolition works have already started on-site, with completion due in March next year.
There will also be 15,000sqft of internal amenities, including communal lounges and health and wellbeing zones, and 31,000sqft of outdoor amenity space.
It is the fifth project for the BTR joint venture, which was launched by Apache – backed by UK insurer NFU Mutual – and Harrison Street to pursue developments in core cities across the UK.
Other Moda neighbourhoods being funded by the joint venture include The Lexington in Liverpool, The Mercian in Birmingham, New York Square in Leeds, and Springside in Edinburgh, representing a total of 2,322 homes.
John Dunkerley, CEO and co-founder of Apache Capital, said: “Alternative residential sectors such as BTR were already seeing increased interest from institutional investors prior to the pandemic thanks to compelling market fundamentals and the promise of liability-matching income streams with defensive, counter-cyclical qualities.
“COVID-19 has further demonstrated the resilience of BTR as an asset class, while we continue to outperform expectations at Angel Gardens in Manchester, our flagship UK BTR development with Moda Living.
Paul Bashir, CEO of Harrison Street’s European business, said: “Glasgow is a key commercial centre within the UK, with a strong local economy that includes thriving financial services, technology and life sciences sectors.
“The city is home to a world-class university, renowned culture and attractive leisure scenes; however, there is a significant under-supply of high-quality rental housing, with a lack of highly amenitised, purpose-built private-rented accommodation.
“We are pleased to further strengthen our partnership with Apache Capital, who, together with Moda Living, have emerged as market leaders within UK private rented accommodation and are successfully pioneering a new model of high-amenity, high-service BTR that will no doubt prove attractive to the UK’s growing number of private renters.”
Johnny Caddick, CEO at Moda Living, said: “As an investor, operator and developer of Next Generation Neighbourhoods, Moda has a track record of adding value to communities and delivering a housing product that locals need.
“Our residents’ want to live in high-quality, professionally managed homes, with ready access to generous indoor and external spaces. As we enter 2021, the market is showing accelerated growth, with interest from renters in new-build developments located in cities undergoing major regeneration.
“Significant institutional investors are more attracted than ever to the BTR sector, driven by the granular income which has proven its resilient qualities during these uncertain times.”
A previous version of this story said the former police headquarters were being converted to residential