Goodstone Living, the UK build-to-rent (BTR) platform set up by Macquarie last July, has acquired a 338-unit scheme set across 2.5 acres and four multi-storey buildings on the waterfront in Leith.
The development will sit directly on Albert Docks offering “unparalleled and uninterrupted” views over the Forth to the north and the capital’s skyline to the south. The Ocean Drive site includes four buildings of between ten and 14 storeys.
Macquarie noted that the site already has a planning consent and Goodstone Living plans to commence construction this summer.
Goodstone was set up by Macquarie Asset Management with UK property industry veterans Darryl Flay and Martin Bellinger.
Bellinger, principal at Goodstone Living, said: “With Edinburgh’s world-class financial district and university nearby, a vibrant restaurant scene, start-up community and an edgy mix of arts and culture, Leith is recognized not only as one of Britain’s most attractive rental neighborhoods but one of the world’s.
“Edinburgh is one of our core markets because of its young, highly educated and growing population, pointing to a deep pool of future talent which is currently undersupplied with quality housing.
“Our strategy will continue to identify opportunities such as this where an undersupply of quality housing matches with key criteria for growth and further regeneration.”
He added: “As with our plans for Digbeth in Birmingham, our residential placemaking strategy is to offer a better quality of living while building healthy homes that are accessible to local residents. We will do this by using smarter design and creating facilities that respond to the way people live, work, play and relax in a post-pandemic world.”
The Leith development will target a 50 per cent reduction in carbon compared to current building regulations with 25 per cent of the site given over to affordable housing.
Each of the four buildings will go “above and beyond” building regulations to include two stairwells, maximizing fire safety, the firm added.
Bosses described Edinburgh as “highly attractive” for BTR developers because of its strong fundamentals, such as an outsized population of post-graduates and young professionals, and a higher proportion of renters (26 per cent) than most of the UK.
A 2020 report from property consultancy JLL revealed that 25-44 year olds account for 35 per cent of Edinburgh’s population – higher than any European city – while 51 per cent of Edinburgh’s workforce has a tertiary education, compared to the global average of 34 per cent .
According to a report from Knight Frank and Ucas, Edinburgh boasts a student retention rate of 53 per cent, ranking it higher than any UK city apart from London.
Goodstone was advised by JLL and Eversheds Sutherland LLP on the transaction.
Macquarie Asset Management forms part of the Macquarie Group and manages more than £394 billion in assets globally.
Founded in 1969, the Macquarie Group employs more than 17,000 people in 33 markets and is listed on the Australian Securities Exchange.
Work to begin on Edinburgh’s 476-home build-to-rent development
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