Goodstone Living has agreed £67m of debt financing with NatWest for its build-to-rent development in Edinburgh.
The Dockside site should consist of at least 338 homes, including including a rooftop lounge, co-working areas and a fitness centre; as well as more than an acre of public realm space.
Goodstone’s development team has re-engineered the project that was acquired last year to electrify the scheme with an air source heat pump in each apartment. This should help reduce operational carbon emissions by up to 55%, compared with the standard set out in building regulations.
It is also targeting a 30% reduction against RIBA’s 2030 Climate Challenge carbon benchmark, with measures including the replacement of cement with ground granulated blast-furnace slag and the use of locally manufactured materials to minimise transport distances.
Around 60 local jobs should be created during construction, with £2m worth of economic benefits targeted for the local community over two and a half years. Plans are in place to enable community groups and enterprises to use some of the available commercial space.
Construction is expected to commence in during the first quarter this year.
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.
“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 and build-to-rent 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.”
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