A PRIVATE equity firm progressing with an innovative social housing project in Perth has said it is investing £50 million in similar schemes across the UK.
Consensus Capital Property is redveloping a former office block at Water Vennel in Perth to create 18 social housing units for Caledonia Housing Association.
The scheme is the company’s first and parent firm Consensus Capital a specialist in real estate, energy and asset management said it was now pushing ahead with a further six similar developments.
Three of the new projects will be in Scotland two in Edinburgh and one in Glasgow while there will also be developments in Manchester, Birmingham and London.
The Edinburgh firm said its intention over the next two years was to roll out a total of 25 developments across the UK, creating 1,200 new city centre apartments for those in need of social housing.
Chief executive Mark Emlick said a new development fund had been set up to acquire, develop and lease the new properties.
Major construction works on the pilot scheme in Perth will begin next month and handover to Caledonia which has taken out a 20-year lease option is anticipated to take place in the autumn.
Mr Emlick said: “We have identified a niche in the commercial to residential development market which is attracting significant interest from housing associations across the UK who want to develop new stock but have been constrained due to cutbacks and lack of developer activity.
“This is a key development for Consensus Capital and our property arm and we see this providing a major platform for growth over the next few years.”
Property managing director Andrew Montague said: “There is a huge under-supply of social housing as a direct consequence of the recession and the banks’ reluctance to provide lending to the property sector.
“We have been able to develop a private equity funding model which does not rely on direct bank finance, to develop empty office buildings in city centres into quality social housing.
“Due to lack of demand from the commercial sector, these office buildings have been lying empty. Now they are getting a new lease of life and providing much-needed homes as well as boosting the construction industry and generating new economic activity in city locations.”
Caledonia chief executive Julie Cosgrove said: “This project will help address two key local priorities the regeneration of empty properties in Perth city centre, and the provision of much needed affordable housing in the city.
“We are looking forward to breathing new life into this building which has lain empty for some time now.”
business@thecourier.co.uk