Edinburgh’s £215M deal for Fountainbridge Build-to-Rent village

Moda Living and Apache Capital multi-million pound investment that will deliver 525 new homes in Built-to-Rent village.

The city centre of Edinburgh has received a major boost with £215M of investment which will deliver 525 new homes for rent in the Fountainbridge areas, as well as the purchase of 46 existing private rented homes.

Moda Living (‘Moda’), with joint venture (‘JV’) partner Apache Capital, bought the site ‘off-market’ from Grosvenor Britain &Ireland (‘Grosvenor’).  The JV will design, build, and manage the new Build-to-Rent homes for the long term alongside the existing homes under the Moda brand.

The deal secures the main residential component in the Fountainbridge regeneration, which is helping revitalise central Edinburgh.

The homes, designed by CDA architects, will sit alongside a new build commercial space of bars shops and restaurants covering 25,000 ft. All residents will have access to 15,000 sq. ft. of on-site amenity space, including a gym, communal lounges, BBQ area and roof terraces with unique views of Edinburgh Castle, as well as fully managed communal gardens including a new public square.

The first phase of the project is expected to be complete by 2019, all phases complete by the end of 2022.

The site already comprises 250 completed homes, including homes for sale, affordable housing for the frail and elderly, serviced apartments, two student residences providing accommodation for over 600 students, and 46 private rented homes.

Tony Brooks, managing director of Moda Living said: “Our ambition has always been to build a truly nationwide brand, and with two schemes now underway in Scotland, renters across the length and breadth of the UK will soon be able to benefit from our amenity-rich, service-driven offer.

“As an investor, developer and operator we are here for the long-term and aim to knit ourselves into the city’s fabric taking on the mantle and ethos of Grosvenor. We are looking forward to working with the local authority and community groups to help meet a pressing need for rental accommodation in Scotland’s capital city.”

Richard Jackson, Managing Director of Apache Capital Partners, said: “Located in the heart of Edinburgh within an established regeneration area, this site matches our previous acquisitions and is perfectly in-line with our strategy of delivering best-in-class PRS developments in prime city centre locations around the UK. We are committing to delivering substantial premium product in Scotland’s domestic markets as the supply/demand fundamentals are still prevalent post-Brexit and further underlines the defensive nature of PRS as an attractive investment in times of economic or political uncertainty, with its ability to generate long term, stable and diversified income streams.

“The acquisition of Springside, is the seventh site that we have secured and under control in our JV with Moda and we have significant capital available to continue expanding our platform and to acquire and fund further sites.”

The second scheme underway in Scotland, having purchased the former Strathclyde Police headquarters in Glasgow in October last year, with a view to deliver the city’s first homes purpose-built for rent. The £115M redevelopment will see the complex transformed into around 400 apartments coupled with on-site amenity areas and new commercial space.

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