First move north of border
Legal & General backs build-to-rent scheme in Scotland
Buchanan Wharf: new development on the Clyde
Legal & General has unveiled its first Build To Rent (BTR) scheme in Scotland to help meet the increasing demand for affordable, quality rental accommodation across the UK.
It will provide funds for Drum Property Group to deliver 324 apartments within Glasgow’s new Buchanan Wharf waterside regeneration area, which will also house the new Northern European hub of Barclays Bank.
Consisting of two 18-storey towers, current design iterations include dining space, a gym, a residents’ lounge and a games room. Buchanan Wharf, which overlooks the River Clyde, will also offer a 4,250 sq ft communal roof terrace and is walking distance from Glasgow Central Station and the International Financial Services District, linked by the Tradeston Bridge.
Legal & General has a stated commitment to transform UK towns and cities, creating jobs and driving economic growth. It has identified Glasgow as a key target for regeneration. Over the last 10 years, the city has seen particularly low levels of residential development, compared with other major cities. Only 517 residential units were completed in 2017, falling substantially short of the 2,500 new homes needed per annum, according to Glasgow City Council.
Buchanan Wharf represents Legal & General’s fourth acquisition in Glasgow over the last 12 months. Last year, it began development of a 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.
The development has been acquired 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.
Legal & General was advised on the acquisition by Savills.