Swedish residential real estate firm Heimstaden Bostad AB has agreed to fund and acquire UK build-to-rent (BTR) developer PLATFORM_’s 464-home residential project in Bonnington Road, Edinburgh for £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, 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,” said Heimstaden Bostad.
“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 …
“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 nanager following completion of the development.”
Christian Birrell, Head of Investment, UK, Heimstaden Bostad, said: “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.”
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.”
Heimstaden Bostad has set sustainability targets to reduce the company’s greenhouse gas emissions in line with the Paris Agreement to limit global warming to 1.5°C by 2050.
In the Bonnington Road development, PV panels will be installed extensively and Heimstaden said it will continuously investigate opportunities to use renewable sources of energy and water supply to support the company’s targets and Edinburgh’s 2030 net zero carbon target.
Burness Paull acted as solicitors for Heimstaden Bostad on this transaction. PLATFORM_ was represented by Womble Bond Dickinson and Addleshaw Goddard. The contractor is Graham (John Graham Construction).