PfP Capital, the mid-market rent housing fund set up last year by Places for People and the Scottish Government, has acquired two development sites in Scotland to deliver much needed affordable homes.
Multi-million mid-market rent investment in East and West Scotland
The first site, a £7.3 million development, was purchased in Paisley in partnership with UK housebuilder Keepmoat Homes and will deliver 66 homes throughout 2019-2020.
The second development was acquired in Edinburgh on the former site of Oxgangs Primary School. This development will be delivered by Edinburgh based developer Hopefield Partnership and CCG Construction. Planning consent has been secured to build 85 new homes at this site, costing £15.5 million and bringing the PfP Capital’s investment in East and West Scotland to over £22 million.
These two acquisitions mark the first transactions by PfP Capital since its launch, with further expected in the coming months.
William Kyle, Fund Director at PfP Capital, said: “Working in partnership with Keepmoat Homes, Hopefield Partnership and the Scottish Government, we are excited to announce these two acquisitions. These projects reaffirm our commitment to delivering affordable homes in Scotland for the community as well as a renewed promise to continue to deploy investor capital where investment is most needed.”
Growing institutional appetite for mid-market rent investment
The mid-market rent fund offers investors stable returns through the development of 1,000 mid-market homes across Scotland, with a focus on sites in or in close proximity to the main cites and key centres of employment.
Matthew Benson, Director of Development Services at Rettie & Co. who acted as the advisors to the fund and supported the deal process, said: “The institutional appetite to invest in well managed, sensibly priced residential accommodation continues to grow. The Scottish Government is to be congratulated on bringing this highly innovative and very cost-effective initiative to fruition and we feel confident that it will pave the way for many more similar transactions, considerably increasing Scotland’s supply of affordably priced homes.”