Legal & General has exchanged contracts on its first Build To Rent (BTR) scheme in Scotland for an undisclosed sum.
Legal & General will forward fund Drum Property Group to deliver 324 apartments within Glasgow’s new Buchanan Wharf waterside regeneration area.
Consisting of two 18 storey towers, current design plans include dining space, a gym, a residents’ lounge and a games room.
'Glasgow has seen very low levels of residential development over the last decade,' said Dan Batterton, head of BTR at LGIM Real Assets.
'With Glasgow predicted to continue to see notable population growth, this latest acquisition is another great example of Legal & General investing in an area with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive long term socioeconomic impact, delivering much needed homes,' Batterton added.
According to the firm, over the last 10 years, Glasgow has seen particularly low levels of residential development, compared with other major cities.
Buchanan Wharf represents Legal & General's fourth acquisition in Glasgow over the last 12 months. Last year, the company began development of a new 160 room hotel; acquired the Scottish court and tribunal building, Atlantic Quay 3; and forward funded the Atlantic Square Development to provide a major new UK Government hub.
Buchanan Wharf has been purchased by co-investors Legal & General Capital and PGGM, as well as additional pension fund capital raised by LGIM Real Assets through its open-ended BTR fund. This latest scheme will bring Legal & General’s BTR portfolio to 3,700 homes across the country, with ambitions to have 6,000 in planning, development or operation by the end of this year.
'With Glasgow continuing to suffer from a severe lack of homes, we are delighted to be partnering with Legal & General to enter the Scottish market, investing in a high quality scheme which will have a positive impact on the built environment over the long term,' said Mathieu Elshout, senior director private real estate at PGGM.
Legal & General was advised on the acquisition by Savills.