The Holland Park development will be built on Pitt Street at the site of the old Strathclyde Police HQ. Last month, the project had secured the backing of two major investors, US-based Harrison Street and London-based Apache Capital, which have now secured a four-year £80m debt facility from real estate investment manager BentallGreenOak to fund construction works.
The 433-home development is the fifth investment to be brought forward in the Apache Capital and Harrison Street joint venture and will be developed and operated for the long term by Moda Living.
The first phase is due to start on site is due shortly, with practical completion due in late 2023. Demolition works were completed in March last year.
As well as creating new homes, Holland Park will provide 15,000 sq ft of internal amenities, including communal lounges and health and well-being zones. A further 31,000 sq ft of outdoor amenity space will be provided, with the four apartment buildings that form Holland Park to be set around a courtyard open to the wider public during the day.
Residents will also have access to landscaped terraces overlooking the Glasgow skyline, while mixed commercial and leisure space will be provided on the ground floor, including cafes, bars, restaurants and co-working facilities.
John Dunkerley, co-founder and CEO at Apache Capital Partners, said: “The backing of one of the world’s leading real estate investment managers for our Holland Park scheme with Moda Living highlights lenders’ growing comfort with build-to-rent as an asset class.
“Covid-19 has revealed the vulnerability of traditional property investments such as retail and offices to disruption. As a result, lenders, together with institutional investors such as pension funds and insurers, are looking to grow their exposure to alternative asset classes like residential for rent.”
Paul Bashir, chief executive officer of Harrison Street’s European business, said: “Glasgow is an attractive Scottish city with large banking, insurance, energy and telecommunications employers, and its growing population needs high-quality rental housing options. We are pleased with the support from leading international real estate investment manager, BentallGreenOak to build upon our existing partnership.”
Johnny Caddick, CEO at Moda Living, said: “The backing of a major global real estate player such as BentallGreenOak is another testament to the strength and quality of the Moda product as well as a statement of confidence in our ability to deliver.
“We look forward to starting on-site at Holland Park, transforming a well-known site in Glasgow city centre into a next-generation neighbourhood comprising high quality homes for rent alongside market-leading amenities.”