Legal & General have exchanged contracts with developer Drum Property Group to start construction work on their first 324 build-to-rent (BTR) apartments in Scotland.
Located in Buchanan Wharf waterside regeneration area, which will also be home to the new Northern European hub of Barclays Bank, the City Centre development will consist of two 18 storey towers, a gym, a residents’ lounge, and a games room. Overlooking the River Clyde, Buchanan Wharf will also offer a 4,250 sq ft communal roof terrace.
This will be Legal & General’s fourth acquisition in Glasgow over the last year, which saw them begin a new 160 room hotel, Atlantic Quay 3, and the Atlantic Square development. This latest development will bring Legal & General’s BTR portfolio to 3,700 homes across the UK, with the hope to have 6,000 in planning, development or operation by the end of 2019.
In the same week, Glasgow City Council approved another BTR property development when planning permission was granted for a £100 million project to build nearly 500 apartments at Clydeside Central Quay.
In 2017, only 517 residential units were completed, nearly four times less than the number of homes needed per annum in the city (2,500), according to Glasgow City Council.
Head of build-to-rent at LGIM Real Assets, Dan Batterton, noted:
“Glasgow has seen very low levels of residential development over the last decade… This latest acquisition is another great example of Legal & General investing in an area with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive long term socioeconomic impact, delivering much needed homes.”