Heimstaden Bostad AB has agreed to fund and acquire PLATFORM_’s 464-home residential project in Edinburgh for SEK 1.5 billion (£124.4 million).
A build contract was placed simultaneously and practical completion is scheduled for mid-2024.
The development is in the Bonnington regeneration area, 2 km (1.2 miles) 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 sqm (325,000 sq. ft) of lettable space and a broad range of amenities for all residents, such as a reception and concierge desk, a gym, a large co-working area and rooftop terraces with views over the Water of Leith and the neighbouring Pilrig Park.
PLATFORM_ assembled the site in 2019 and 2020 from three separate ownerships and subsequently obtained planning permission for 464 residential apartments.
As home to the government of Scotland, a seat of learning with its highly respected university and a major centre for financial services, Edinburgh is the UK’s second most affluent city after London, according to Heimstaden.
The city’s historical and cultural attractions have also made it a leading tourist destination. Housing supply, however, has not kept pace with the growing number of households, which has already resulted in strong demand for rental accommodation, Heimstaden research shows.
“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.
Jean-Marc Vandevivere, CEO of PLATFORM_ said “We’re delighted to be partnering with Heimstaden and contributing our deep experience of Build to Rent to support their continued UK expansion. We’re looking forward to opening our Edinburgh scheme in 2024 to provide much needed housing in one of the most attractive cities in the UK.”