Developers secure Bank of Scotland loans for Edinburgh residential developments
Around 350 flats are to be built across two sites in Edinburgh after developers secured more than £40 million in loans.
Artisan Real Estate Investors has received £21m in development debt from Bank of Scotland to support its Canonmills Gardens project on the site of a former B&Q store on Warriston Road.
Meanwhile Octopus Property has agreed to provide MCR Property Group with a £20m development loan, to convert a former office building into 163 apartments.
Artisan’s Canonmills Gardens project will deliver 180 apartments, including 45 units of affordable housing acquired by Hillcrest Housing Association.
Construction of the scheme has commenced with the first units expected to be available from March 2020.
Clive Wilding, development director from Artisan Real Estate Investors, said: “We’re really excited about Canonmills Gardens following our earlier success in Edinburgh.
“Having the backing of Bank of Scotland, the expertise of its team and their ability to help structure a tailored facility, has been pivotal to our plans.”
A mezzanine facility of £2.6m has also been provided by investor Beaufort Ventures, already an equity investor in the development, to provide Artisan with a more diversified funding mix.
Steven Edwards, relationship director for Bank of Scotland’s commercial real estate, added: “Edinburgh’s centre is starved of new, good quality residential stock, which gives Cannonmills Gardens an obvious appeal.
“Artisan has shown great vision in acquiring the site and in its plans to transform it into a new community.”
MCR Property Group has secured planning consent to convert Chesser House in Gorgie Road. It will be known as Elfin Square and will have 123 one, two and three-bed private apartments for sale, as well as 40 affordable homes.
Gavin Eustace, head of residential development at Octopus Property, said: “This is an exciting project to be involved with, in what is one of Europe’s most dynamic and strong performing cities.
“We are particularly comfortable working alongside a developer with a track record of delivering high quality schemes across the UK and hope this is the start of a long and mutually beneficial relationship.”
The private apartments have been renamed Embankment West, and will be sold by MCR Property Group’s residential sales arm, Regency Residential.