Hines is set to buy Solasta Riverside, the major build-to-rent scheme at Buchanan Wharf next to Barclays' campus on Glasgow's Clydeside from Legal & General Investment Management, as it builds out a £500 million UK platform, CoStar News understands.
Drum Property Group completed the construction of the 324 build-to-rent apartments for LGIM in 2022.
The 280,000 square-foot complex comprises two 18-storey towers with restaurant, a gym, residents’ lounge and games room. It also has a 4,250-square=foot communal roof terrace.
Drum’s wider Buchanan Wharf is a £500 million mixed-use development close to Glasgow Central Station and the International Financial Services District and includes Barclays’ Northern Europe campus headquarters, which opened in 2021, and a 75,000-square-foot office for The Student Loans Company, also forward funded by LGIM.
Global investment manager Hines announced it was forward-funding the Pottery Lane scheme in Newcastle in April last year, its first deal in the UK BTR market.
Hines is funding the construction of the 519-unit scheme, which is being developed by Olympian Homes, via its Hines European Property Partners fund, which is core-plus focused. In July, the company said it had secured over €1 billion (US$1.086 billion) of equity commitments for HEPP.
Hines has previously said it will build a UK portfolio through its value-add fund, Hines European Real Estate Partners 3, exiting with a sale to longer erm institutional capital in five years. The team wants a portfolio with a gross development value of between £200 million and £500 million, with a minimum number of homes per location of 80.
The companies declined to comment.