Queens Cross Housing Association has secured £40m funding from M&G Investments for the transformation of the Hamiltonhill area of Glasgow into a new urban ‘suburb’.
Queens Cross will construct 300 affordable homes for rent on the site located north of the city centre, which will be complemented with an additional 300 new-build homes for sale.
The association is in discussion with a range of developers to take the project forward.
Queens Cross CEO Shona Stephen said: “This is just the latest piece of the jigsaw that will deliver a real transformational change to this part of the city.”
As part of the development, new park and green space will be provided, along with community and commercial developments that will transform the long-term vacant land.
Shona said: “Building a relationship with an asset management company for funding is a first for Queens Cross. This innovative approach to securing investment is a great demonstration of our commitment to explore all avenues to secure the funds we need to help improve the lives of our tenants, and to build Queens Cross as an area people can be proud to call home.”
M&G Investments head of social housing Mark Davie said: “Queens Cross Housing Association is already providing much needed housing across Glasgow, supporting the local community.
“This is our third deal with a housing association in Scotland where good quality affordable homes continue to be in short supply.
“This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property.
“M&G has now invested over £6 billion in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”
The funding will also allow the association to restructure existing debt, freeing up more money to explore other development opportunities in the area.
NatWest Markets acted as private placement agent on the financing for Queens Cross.
Work on the Hamiltonhill development is scheduled to commence later in 2019 with initial ground and drainage works.
Glasgow City Council will also be a partner and funder, delivering the project as part of the Glasgow Canal Regeneration Partnership area.
Image: Queens Cross secures funding for Hamiltonhill regeneration scheme in UK. Photo: Courtesy of Queens Cross Housing Association.