Harrogate’s Moda Living secures £215m deal for Edinburgh build-to-rent scheme

It was recently announced that a multi-million-pound investment will deliver 525 new homes for rent in the Fountainbridge area in Edinbrugh, as well as the purchase of 46 existing private rented homes.

Harrogate-based Moda Living, with joint venture partner Apache Capital, bought the site ‘off-market’ from Grosvenor Britain & Ireland in a £215m deal.

The joint venture will design, build, and manage the new Build-to-Rent homes for the long term alongside the existing homes under the Moda brand.

The deal secures the main residential component in the Fountainbridge regeneration, which is helping revitalise central Edinburgh.

Designed by CDA architects, the new housing will sit alongside 25,000 sq. ft. of new build commercial space consisting of shops, bars and restaurants.

All residents will have access to 15,000 sq. ft. of on-site amenity space, including a gym, communal lounges, BBQ area and roof terraces with views of Edinburgh Castle, as well as fully managed communal gardens including a new public square.

Moda aims to be on-site by end of year, with first phase completed by end of 2019 and all phases complete by end of 2022.

The site already comprises 250 completed homes, including homes for sale, affordable housing, serviced apartments, two student residences providing accommodation for over 600 students, and 46 private rented homes.

Tony Brooks, managing director of Moda Living said: “To work with Grosvenor, one of the world’s oldest and most prestigious property companies, has been fantastic for us and the work they have done to produce an innovative build to rent scheme set within exemplar public realm matches our own vision of delivering high-quality housing in city centre locations across the United Kingdom.

“We look forward to continued co-operation as we deliver Edinburgh city centre’s largest scheme of homes for rent.

“As an investor, developer and operator we are here for the long-term and aim to knit ourselves into the city’s fabric taking on the mantle and ethos of Grosvenor. We are looking forward to working with the local authority and community groups to help meet a pressing need for rental accommodation in Scotland’s capital city.”

Richard Jackson, managing director of Apache Capital Partners, added: “Located in the heart of Edinburgh within an established regeneration area, this site matches our previous acquisitions and is perfectly in-line with our strategy of delivering best-in-class PRS developments in prime city centre locations around the UK.

“We are committing to delivering substantial premium product in Scotland’s domestic markets as the supply/demand fundamentals are still prevalent post-Brexit and further underlines the defensive nature of PRS as an attractive investment in times of economic or political uncertainty, with its ability to generate long term, stable and diversified income streams.”

David Yaldron, director of city centre developments for Grosvenor Britain & Ireland, commented: “We are committed to great placemaking and believe new, high-quality rental homes in Fountainbridge will help unlock the district’s potential.

“In Moda Living and Apache Capital we have selected an investor and operator with a similar commitment who will deliver much needed new homes ‎in this burgeoning neighbourhood for Edinburgh.”

Burness Paull and KPMG acted on behalf of the vendor, Grosvenor, with Brodies and Rettie & Co acting for the purchasers, Moda Living and Apache Capital.