Goodstone Living secures debt financing for its first build-to-rent community in Scotland
Goodstone Living has agreed £67 million of debt financing with Natwest for the development of its next generation build-to-rent residential community in Edinburgh. The waterfront scheme, branded as ‘Dockside’, will have panoramic views and accommodate at least 338 homes and resident amenity space including rooftop lounge and dining, co-working areas, and a fitness centre; as well as over one acre of public realm space to promote resident and public wellbeing.
Goodstone’s specialist development team has re-engineered the project that was acquired last year to fully-electrify the scheme with an air source heat pump in each apartment – future proofing the scheme for when the electricity supply grid is decarbonised. This major change will help reduce operational carbon emissions by up to 55 percent compared with the standard set out in Part L of the Building Regulations*. The Goodstone team are also targeting a 30 percent reduction against RIBA’s 2030 Climate Challenge embodied carbon benchmark, with key measures including the replacement of cement with Ground Granulated Blast-furnace Slag and the use of locally manufactured materials to minimise transport distances to ensure reduced carbon emissions**.
The project also demonstrates the business’ commitment to social value by creating 60 local jobs and a targeted £2 million worth of socio-economic benefits for the local community over two and a half years. Plans are in place to enable community groups and enterprises to use some of the available commercial space, with other benefits including access to learning, work experience and training opportunities for young people and those from under-represented backgrounds.
The construction of the scheme is expected to commence in Q1 2023.
Carl White, Investment Director, Goodstone Living, said:
“The size, scale and timing of this financing package underscores how defensive build-to-rent has become as an asset class. We continue to be attracted to Edinburgh’s growing rental population and falling supply which is creating enhanced demand for our high-quality, purpose-built and professionally-managed communities.
Natwest’s recognition of the need to invest additional capital to exceed current building regulations has been very welcome and we are committed to working in partnership with them to deliver not only a great project for our customers, but a fantastic new community hub for Leith.”
Michael Goode, Director, Build to Rent Lead, Natwest, said:
“We have long been supportive of build-to-rent for its structural characteristics, which have proven themselves throughout the last few years, as schemes have remained full and continued to attract investment. It is great to support a project seeking to not only reduce the severe demand supply imbalance in Edinburgh, but also to decarbonise both the construction and the operation of over 300 new homes for rent - each of which will have an air source heat pump.”
Jones Day acted for Goodstone Living and Taylor Wessing acted for Natwest.
*The scheme is designed to the Scottish Technical Standards Section 6, however, Goodstone Living uses Part L from the national Building Regulations as its corporate benchmark.
**The business’ embodied carbon reduction target is to outperform a benchmark set by RIBA of 1,200 kg of CO2 per square metre.