The joint venture – which currently holds the largest pipeline of any rental developer in the UK – will design, build and manage 525 new homes as part of the Fountainbridge regeneration in Scotland’s capital city.

Purchased off-market from Grosvenor Britain & Ireland, the site already comprises 250 completed homes, two student residences accommodating over 600 students and 46 private rented homes.

Tony Brooks, managing director of Moda Living, said: “To work with Grosvenor – one of the world’s oldest and most prestigious property companies – has been fantastic for us and the work they have done to produce an innovative build-to-rent scheme set within exemplar public realm matches our own vision of delivering high-quality housing in city-centre locations across the United Kingdom.

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“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.”

The new housing development will sit alongside 25,000 sq ft of new-build commercial space, including shops, bars and restaurants.

All residents will have access to a gym, communal lounges and roof terraces with views of Edinburgh Castle.

Moda aims to be on-site by the end of the year, with the first phase completed by the end of 2019 and all stages finished by the end of 2022.

This deal marks the second Scottish project from the Moda and Apache joint venture, following the purchase of the former Strathclyde Police headquarters in Glasgow last year.

The £115m redevelopment will create around 400 apartments and new commercial space.

Kevin Stewart, minister for local government and housing, added: “I am delighted to see Moda Living and Apache invest significantly in Scotland’s growing build-to-rent sector.

“This government has made clear its commitment to boosting housing supply across all tenures and we recognise the significant contribution that can be made by a high-quality, purpose-built private rented sector.

“We have taken a range of actions to encourage developments like this to come to fruition and look forward to the benefits of this investment being realised on the ground.”