Legal & General has exchanged contracts on a new build to rent (BTR) site in Glasgow City Centre, on behalf of its LGIM Real Assets’ BTR Fund, which is now worth in the region of £1.9bn.

The 346-home BTR scheme in Candleriggs Square, forms part of a major mixed-use development which will provide a mix of new homes, offices, hotels, restaurants, amenities and landscaped open space.

The BTR element, a 17-storey tower which will be developed by local developer Drum Property Group in conjunction with Legal & General, will comprise a mixture of studio, one-, two- and three-bedroom properties, including six duplex penthouse apartments.

Typical of schemes within Legal & General’s BTR portfolio, the building, which will make up part of a £300m Drum Property Group plan to transform Candleriggs Square, a 3.6 acre regeneration area, will include a dining space, gym, business lounge and games room.

Approval was awarded for a ‘Planning Application in Principle’ for Candleriggs Square by Glasgow City Council in May 2020.

Graeme Bone, managing director of Drum Property Group, commented: “The L&G deal is testament to the unwavering commitment and confidence we have placed in both the Candleriggs Square site and Glasgow city centre, even during these most testing of times.

“It represents a significant step forward in the long-awaited regeneration of one Glasgow’s most prominent gap sites, driving forward the evolution of Candleriggs Square which has quickly established itself as one of Scotland’s largest and most important commercial and residential development sites.

“This will be a huge boost to the area and to local businesses, who are in desperate need of some good news right now. We can now look forward to a once-in-a-generation opportunity to transform a very special area which has always been at the centre of Glasgow’s commercial and social development.”

LGIM Real Assets, which has committed to invest £82m into forward funding the first phase element of the BTR site in Candleriggs Square, currently owns and operates 15 schemes in 11 UK cities, including more than 5,000 homes.

Candleriggs Square will mark the fund’s second investment in Glasgow, having committed last year to the forward funding of a 324-home BTR scheme at neighbouring Buchanan Wharf, again using local developer Drum Property Group to deliver the project.

The Buchanan Wharf waterside scheme, which will also house the new Northern European hub of Barclays Bank, will consist of two 18 storey towers, with current design iterations including dining space, a gym, a residents’ lounge and a games room.

Buchanan Wharf, which overlooks the River Clyde, will also offer a 4,250 sq ft communal roof terrace and is walking distance from Glasgow Central Station and the International Financial Services District, linked by the Tradeston Bridge.

Legal & General has identified Glasgow as a key target for regeneration. Over the last 10 years, the city has seen particularly low levels of residential development, compared with other major cities.

Dan Batterton, head of BTR at LGIM Real Assets, said: “Glasgow faces a significant undersupply of high-quality rental accommodation and, within the coming decade, will see its population increase as it continues to establish itself as one of the UK’s best cities to live and work. The site is located in a prime location and, alongside Legal & General’s Buchanan Wharf scheme, is the city’s only high-density build to rent product.

“Through our BTR Fund we want to create the best possible experience for renters, providing high-speed digital connectivity, dedicated workspace and exercise facilities, all of which are essential in a post-Covid world.”