Funding pledged for Edinburgh's new Friends-style flats development at Fountainbridge

City’s largest purpose-built private rental development

Work on the Springside development is expected to start on site later this year

TWO major investors today announced funding for a “Friends-style” flats development of nearly 500 rented apartments in the centre of Edinburgh.

The £215 million project at Fountainbridge is billed as the city’s largest purpose-built private rental housing development.

It will include 476 one-, two- and three-bedroom flats alongside 48 existing, fully-leased studio apartments, as well as shops, bars, restaurants and cafes.

The Sprinsgide flats will have roof terraces, communal lounges and a concierge service

The development, known as Springside, is based on a US model popularised in 90s sitcom Friends, in which the characters' apartments are managed by a superintendent. There will also be communal lounges, health and wellbeing facilities plus roof terraces, a private dining room and fully-managed communal gardens.

The project will be funded by UK-based alternative real estate investment managers Apache Capital Partners and US-based Harrison Street, one of the largest alternative real asset investment firms through a joint venture which is already involved in similar projects in Liverpool, Birmingham and Leeds.

Work is expected to start on site later this year, with completion scheduled for 2022.

The development will be managed for the long term by Moda Living a leading UK-based operator of build-to-rent housing.

There will be an on-site team for cleaning, maintenance and events management as well as the 24-hour concierge service.

Apache Capital and Moda Living purchased the Springside site, which included 48 existing homes, in March 2017 from Grosvenor Great Britain and Ireland in a deal hailed as one of Scotland's biggest property transactions post-Brexit, helping kick-start the country's build-to-rent sector.

The developers say as well as the flats and communal facilities, Springside will also include 15,000 sq. ft. of ground-floor retail and leisure space centred around new landscaped public squares, creating a new “urban village” with a year-long calendar of events and activities for both residents and the wider public to enjoy.

John Dunkerley, CEO and co-founder of Apache Capital Partners said: ”We are committed to delivering and expanding our build-to-rent pipeline with both Harrison Street and Moda Living despite the near-term disruption being caused by Covid-19. “There remains a fundamental mismatch between supply and demand for high quality purpose-built rental housing in the UK.”

Robert Mathias, senior managing director and head of international business for Harrison Street, said: “Edinburgh is a thriving city with a strong economy focused on the financial and technology sectors, a highly skilled workforce and vibrant cultural attractions.

“However, Edinburgh suffers from a significant lack of viable residential rental housing options given there is virtually no purpose-built accommodation in a city where nearly a quarter of the population are renters.

“We are thrilled to further our partnership with Apache Capital to develop Springside, which will provide much needed attractive rental options for the growing number of people in the UK choosing to rent.”