Listed residential property group Heimstaden Bostad has agreed to fund and acquire Platform’s 464-home residential project in Edinburgh for SEK 1.5 bn (€150 mln).
The development is in the Bonnington regeneration area, north of Edinburgh’s city centre, to which it will be connected by tram from 2023. A quarter of the predominantly two- and three- bedroom homes will be offered as intermediate housing at discounts of around 40% to open market rents. The property will have a total of 30,200 m2 of lettable space and a broad range of amenities for all residents.
Platform assembled the site in 2019 and 2020 from three separate ownerships and subsequently obtained planning permission for 464 residential apartments. Completion is scheduled for mid-2024.
‘Edinburgh’s strong fundamentals make this acquisition a natural next step for us in providing high-quality and affordable homes to our customers, in line with our strategy to expand our presence in the UK market,’ said Christian Birrell, head of investment, UK.
The transaction is structured as a turnkey forward funded project to ensure Heimstaden Bostad carries no direct development risk. Platform will act as developer on the project as well as being retained as asset manager following completion of the development.
Platform has been developing and operating BTR properties across the UK since 2015.
Heimstaden Bostad’s existing footprint in the UK consists of a 750-home development in Birmingham also being delivered under a forward purchase agreement and around 60 more homes in the Greater London area. The UK expansion plan is part of Heimstaden’s broader pan-European growth strategy, which last year involved SEK 144 bn of residential property acquisitions.
