Dandara Living to build 342 apartments in Glasgow’s West End thanks to £60m HSBC UK funding
Dandara Living has secured a £60 million Green Revolving Credit Facility from HSBC UK allowing the firm to build 342 Built to Rent (BtR) apartments in Glasgow’s West End.
Dandara will use the funding, which is aligned to the Loan Market Association’s “Green Loan Principles” and one of the first sustainable finance facilities of its kind in the housing sector, to fund its existing pipeline of 11 sustainable BTR developments across the UK with capacity to accommodate in excess of 4,500 new BTR homes.
The first three sites, which have already secured planning permission, are in Birmingham, Glasgow and Bristol. The Unity & Armouries site in the Southside area of Birmingham will consist of 162 apartments over two buildings and is set for completion in Q1 2023.
In Glasgow, the Gh2o development will deliver 342 waterfront apartments in the city’s sought-after West End also in Q1 2023. In Bristol, the Bedminster Green development to the south of the city will feature a mix of 316 one and two-bedroom apartments, expected to be available from Q3 2023.
Ed Tynan, director of the Dandara Group, said: “As a large-scale BTR developer and operator, we are committed to managing the social, economic and environmental impacts of our activities responsibly. ESG is embedded in our business practices and operational procedures. In securing this new Green Revolving Credit Facility, we have increased our ability to deliver sustainable new homes which enhance residents’ lives and add long-term social and economic value to the communities we operate in.”
Hugh Taylor, head of housing for HSBC UK, added: “Not only will this deal give Dandara the flexibility it needs to roll out schemes across the country, it also enables the developer to respond to the housing challenge facing many of our major cities without compromising on sustainability. BTR developments of this kind have become an important part of the solution to our housing issues by providing flexible living options which reduce energy consumption, reuse materials and enhance biodiversity.”
The deal continues Dandara’s relationship with HSBC UK and follows the bank’s provision of £183m of development funding in 2016. Along with an additional £45m from the Homes and Communities Agency (now Homes England), this funding was used to support the construction of homes across the three BTR schemes in Manchester, Birmingham and Leeds.
Robert King, head of sustainable finance at HSBC UK, concluded: “Residential housing is a substantial contributor to UK carbon emissions. Providing housing with strong sustainability credentials is therefore critical to meeting the UK’s net zero goals. Supporting businesses such as Dandara in meeting their sustainability goals through the provision of innovative Sustainable Finance solutions is an important part of our commitment to help businesses thrive in the transition to net zero.”