Apache Capital Partners and Harrison Street are to fund a build-to-rent (BTR) development in central Glasgow that will be managed by Moda Living.
The scheme, known as Holland Park, will see the former Strathclyde Police headquarters on Pitt Street replaced by four apartment blocks providing 433 homes for rent.
Demolition works finished last March, with practical completion due in late 2023.
The investment is the fifth UK project funded by Apache Capital and Harrison Street.
In addition to Holland Park in Glasgow, current Moda neighbourhoods being funded by the joint venture include Springside in Edinburgh, The Lexington in Liverpool, The Mercian in Birmingham and New York Square in Leeds – representing a total of 2,322 homes.
Apache Capital and Moda Living purchased the Holland Park site in October 2016.
As well as creating new homes, Holland Park will provide 15,000 sq ft of internal amenities, including communal lounges and health and wellbeing zones.
A further 31,000 sq ft of outdoor amenity space will be provided, with the four apartment buildings that form Holland Park to be set around a courtyard open to the public during the day.
Residents will also have access to landscaped terraces overlooking the Glasgow skyline, while mixed commercial and leisure space will be provided on the ground floor – including cafes, bars, restaurants and co-working facilities.
Paul Bashir, chief executive of Harrison Street’s European business, said: “Glasgow is a key commercial centre within the UK, with a strong local economy that includes thriving financial services, technology and life sciences sectors.
“The city is home to a world-class university, renowned culture and attractive leisure scenes, however there is a significant under-supply of high-quality rental housing, with a lack of purpose-built private rented accommodation.”
John Dunkerley, chief executive and co-founder of Apache Capital Partners, said: “Alternative residential sectors such as BTR were already seeing increased interest from institutional investors prior to the pandemic thanks to compelling market fundamentals and the promise of liability matching income streams with defensive, counter-cyclical qualities.”
Johnny Caddick, chief executive at Moda Living, added: “Significant institutional investors are more attracted than ever to the BTR sector, driven by the granular income which has proven its resilient qualities during these uncertain times.”