A joint venture between housebuilder Ediston Homes and the Housing Growth Partnership has secured a £17 million bank loan to build 145 new homes on the former site of Forth Valley College in Sauchie, Clackmannanshire.
The college was closed in 2012 and the 14-acre site demolished to make way for the residential development.
The development called Devongrange will be a mix of terraced, semi-detached and detached houses of between two and four bedrooms. Ten homes will also be transferred to a registered social landlord (RSL) to provide new affordable housing for the area.
The deal is the fourth between the Bank of Scotland Commercial Real Estate team and HGP and has helped to deliver 409 homes with £17 million in funding, as well as being the second agreement between the bank and Ediston Homes.
Ediston Homes, part of the Edinburgh-based property and asset management company, Ediston Real Estate, which includes the listed Ediston Property Investment Company REIT.
Neal Jamieson, director from Ediston Real Estate said: “Our vision is for the Ediston Homes brand to become a thriving part of our group by targeting a significant volume of completions every year of critically needed housing supply across Scotland.
This is its second scheme, following the success of Chesser in Edinburgh, and the support of the HGP and Bank of Scotland is enabling us to realise our strong growth plans.”
Graeme Steel, associate director, Bank of Scotland Commercial Real Estate, said: “Helping new entrants break into the housebuilding sector is an important piece of the puzzle in tackling the under supply of family housing. Ediston is an expert operator in the UK property market and backing them to succeed in the housing sector will help deliver significant benefits to the wider Scottish economy.
“And we’re proud to be once again teaming up with HGP for another significant transaction. Our combined track record in Scotland is growing in stature with every deal, and delivering the Bank’s pledge of Helping Scotland Prosper”.”
Ross Baird, Investment Manager, Housing Growth Partnership, commented: “Our investment alongside Ediston Homes in the Devongrange development will see a good volume of family housing come forward. It also represents our first investment with Ediston and helps them towards their goal of becoming a prominent regional player.
"We’re excited to see the ‘design by streets’ development come forward and the positive impact it will have on the local community.”
The Housing Growth Partnership is a joint venture between Lloyds Banking Group – the Bank of Scotland’s parent company – and Homes England. It was formed in 2015 with a £50 million commitment to invest equity in residential development, with the aim of supporting the construction of more than 2,000 homes across the UK.
This year, following the initial success of HGP, each shareholder committed a further £60 million of investment, allowing HGP to continue and expand its work in backing small to medium sized housebuilders across the UK.
