The four-year facility provided by BentallGreenOak will fund the construction and stabilisation of the new development, Holland Park, for which the site was purchased by Apache Capital and Moda Living in October 2016.
The scheme will offer 433 new homes, as well as 15,000 sq ft internal amenities, including communal lounges and health and wellbeing zones.
A further 31,000 sq ft of outdoor amenity space will be provided, with the four apartment buildings that will form Holland Park set to be placed 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 situated on the ground floor, including cafes, bars, restaurants and co-working facilities.
Holland Park 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.
Demolition work was completed in March 2020, and start on site for the first phase is due shortly.
The development is expected to be completed in late 2023.
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John Dunkerley, co-founder and CEO at Apache Capital, 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 BTR as an asset class.
“Covid-19 has revealed the vulnerability to disruption of traditional property investments, such as retail and offices.
“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.
“The leasing success at Angel Gardens, our flagship BTR scheme with Moda Living, has demonstrated the resiliency of our highly serviced model and we anticipate strong consumer interest in Holland Park once it completes.”
Paul Bashir, CEO at Harrison Street’s European business, added: “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."
Jim Blakemore, global head of debt at BentallGreenOak, commented: “Against the backdrop of pandemic-related uncertainty we are seeing across the real estate market, BTR continues to perform well.
Jim added that BentallGreenOak saw a "huge amount of opportunity" across living real estate and hotels, and believed that demand for agile and relationship-driven debt partners would only grow.
“As traditional lenders continue to pull back from the market, there will be a huge growth opportunity for alternative providers.”
Johnny Caddick, CEO at Moda Living, stated: “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."