A developer has secured a major funding deal to help it progress two build-to-rent housing schemes in Scotland.
Insurance group National Farmers Union Mutual (NFUM) and North American investment group Harrison Street are providing the funding to Moda Living for seven new city centre build-to-rent schemes including Springside at Fountainbridge in Edinburgh, where more than 500 flats will be built, and the 433-home Holland Park site in Glasgow.
Moda said the deal, which also involves real estate investment management firm Apache Capital, will support its plans to built more than 7,000 rental apartments across seven sites and is one of the most significant transactions ever completed in the build-to-rent sector.
Johnny Caddick, managing director of Harrogate-based Moda Living, said: “This is a huge milestone for Moda that will underpin the creation of thousands of new homes for rent, supporting major investment into many of the UK’s major cities.
“Being able to attract long-term, institutional capital is crucial if we are to build more homes. This is a major vote of confidence in build-to-rent and proof positive that Moda is well positioned to continue expanding and look at further acquisitions over the coming year.”
Latest data shows that build-to-rent development is growing dramatically, with the regions outpacing London. According to latest figures from trade body the British Property Federation, around 132,000 build-to-rent homes are finished or underway, up by a quarter year-on-year.
During the third quarter, around 23,000 build-to-rent homes were under construction in the regions, compared to around 18,000 in London
Recent developments have included the Harbour Gateway site in Edinburgh, managed by Rettie & Co on behalf of Forth Ports.