LGIM Real Assets announces, on behalf of its Build to Rent (BTR) Fund, the forward funding of an £81.5m mixed-use regeneration scheme in Candleriggs Square, Glasgow. The scheme will deliver 346 BTR homes, 17 parking spaces and c.12,800 sq ft of commercial space, helping to meet the city’s demand for high-quality, flexible rental accommodation.
30 Sep 2020
LGIM Real Assets, which entered the BTR sector in 2016, currently owns and operates 15 schemes in 11 UK cities, including over 5,000 homes. Candleriggs Square will mark the Fund’s second investment in Glasgow, last year having committed to the forward funding of a 324-home BTR scheme at neighbouring Buchanan Wharf, again using local developer Drum Property Group to deliver the project.
The 17-storey tower at Candleriggs Square will comprise a mixture of studio, one-, two- and three-bedroom properties, including six duplex penthouse apartments. Typical of schemes within Legal & General’s BTR portfolio, the building will include a dining space, gym, business lounge and games room. Commercial units included within the scheme will all meet a BREEAM ‘Excellent’ rating.
LGIM Real Assets’ £1.9bn BTR Fund has several landmark projects currently under development, including a 1,000-home scheme in Wandsworth, London, and a 200-home scheme in Brighton. The Fund is currently undertaking an international equity raising programme to help meet construction output in line with UK’s requirements for high-quality rental accommodation.
The scheme will make up part of a £300m Drum Property Group plan to transform Candleriggs Square, a 3.6 acre regeneration area which will provide a mix of high-quality homes, offices, hotels, restaurants, amenities and landscaped open space. Approval was granted for a ‘Planning Application in Principle’ for Candleriggs Square by Glasgow City Council in May 2020.
Dan Batterton, Head of BTR at LGIM Real Assets: "Glasgow faces a significant undersupply of high-quality rental accommodation and, within the coming decade, will see its population increase as it continues to establish itself as one of the UK’s best cities to live and work. The site is located in a prime location and, alongside Legal & General’s Buchanan Wharf scheme, is the city’s only high-density build to rent product.
Through our BTR Fund we want to create the best possible experience for renters, providing high-speed digital connectivity, dedicated workspace and exercise facilities, all of which are essential in a post-covid world."
Graeme Bone, Managing Director of Drum Property Group: "The L&G deal is testament to the unwavering commitment and confidence we have placed in both the Candleriggs Square site and Glasgow city centre, even during these most testing of times.
It represents a significant step forward in the long-awaited regeneration of one Glasgow’s most prominent gap sites, driving forward the evolution of Candleriggs Square which has quickly established itself as one of Scotland’s largest and most important commercial and residential development sites.
This will be a huge boost to the area and to local businesses, who are in desperate need of some good news right now. We can now look forward to a once-in-a-generation opportunity to transform a very special area which has always been at the centre of Glasgow’s commercial and social development."
Notes to editors
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
* at 30 June 2021
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.28 trillion (€1.43 trillion; CHF1.55 trillion; $1.75t trillion; JPY181 trillion)*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors. Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*LGIM internal data as at 31 December 2020. The AUM disclosed aggregates the assets managed by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. The AUM includes the value of securities and derivatives positions.
(As of June 2021)
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