Goodstone Living has secured debt financing of £67m from Natwest for the development of its first BTR development in Scotland.
The waterfront Dockside scheme in Edinburgh will accommodate at least 338 homes, with resident amenity provision including a rooftop lounge, co-working areas and a fitness centre.
Goodstone acquired the site last year and its specialist development team has re-engineered the project to fully electrify the scheme with an air source heat pump in each apartment, which will help reduce operational carbon emissions by up to 55%.
Carl White, investment director at Goodstone Living, said: “The size, scale and timing of this financing package underscores how defensive build-to-rent has become as an asset class. We continue to be attracted to Edinburgh’s growing rental population and falling supply which is creating enhanced demand for our high-quality, purpose-built and professionally-managed communities.
“Natwest’s recognition of the need to invest additional capital to exceed current building regulations has been very welcome and we are committed to working in partnership with them to deliver not only a great project for our customers, but a fantastic new community hub for Leith.”
Michael Goode, director, BTR lead at Natwest, added: “We have long been supportive of build-to-rent for its structural characteristics, which have proven themselves throughout the last few years, as schemes have remained full and continued to attract investment.
“It is great to support a project seeking to not only reduce the severe demand supply imbalance in Edinburgh, but also to decarbonise both the construction and the operation of over 300 new homes for rent – each of which will have an air source heat pump.”
Jones Day acted for Goodstone Living and Taylor Wessing acted for Natwest. Construction of the scheme is expected to commence in Q1 2023.
