Legal & General is froward funding an £81.5m (€89m) build-to-rent (BTR) tower in Scotland.
The investment, made by LGIM Real Assets, on behalf of its £1.9bn BTR fund, will fund a mixed-use regeneration scheme in Candleriggs Square in Glasgow being developed by Drum Property Group.
The scheme will deliver 17-storey tower comprising of 346 BTR homes, 17 parking spaces and 12,800sqft of commercial space, the manager said.
Candleriggs Square is the fund’s second investment in Glasgow, following last year’s funding of a 324-home BTR scheme at Buchanan Wharf.
LGIM Real Assets, which entered the BTR sector in 2016, currently owns and operates 15 schemes in 11 UK cities, including over 5,000 homes.
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 to live and work.
“The site is located in a prime location and, alongside Legal & General’s Buchanan Wharf scheme, is the city’s only high-density build to rent product.
“Through our BTR Fund we want to create the best possible experience for renters, providing high-speed digital connectivity, dedicated workspace and exercise facilities, all of which are essential in a post-covid world.”
LGIM Real Assets’ BTR fund is currently undertaking an international equity raising programme, the manager said.
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