Funding deal for capital homes

Developer Artisan Real Estate Investors has secured a £21 million funding package to support a residential scheme on the site of a former B&Q store in Edinburgh.

Artisan, which has agreed the development debt funding with Bank of Scotland (BOS), is to use the agreement to help bring forward a new 180-apartment scheme on Warriston Road.

Construction of the scheme, which includes 45 units of affordable housing acquired by Hillcrest Housing Association, has commenced with the first units expected to be available from March 2020.

Canonmills Gardens is being built on the site of a former B&Q superstore, close to Edinburgh’s commercial centre and the Royal Botanic Gardens, Inverleith Park and the New Town.

Artisan was behind Edinburgh’s £200m New Waverley mixed-use regeneration scheme, which includes 200,000 square feet of Grade A office space delivered for the UK Government Property Agency.

Clive Wilding, development director from Artisan Real Estate Investors, said: “We’re really excited about Canonmills Garden following our earlier success in Edinburgh. Having the backing of Bank of Scotland, the expertise of its team and their ability to help structure a tailored facility, has been pivotal to our plans.”

A mezzanine facility of £2.6m has also been provided by investor Beaufort Ventures, already an equity investor in the Canonmills Gardens development, to provide Artisan with a more diversified funding mix.

Steven Edwards, relationship director for Bos’s commercial real estate, added: “Edinburgh’s centre is starved of new, good quality residential stock, which gives Cannonmills Gardens an obvious appeal.

“Artisan has shown great vision in acquiring the site and in its plans to transform it into a new community.”