£20m of Scottish taxpayers’ money to back 370 new Edinburgh homes
“Scotland’s housing challenges require urgent and meaningful intervention” – Andy Mallin, SNIB
Almost £20 million of taxpayers’ money will be used to support the development of 370 new homes in Edinburgh.
The Scottish National Investment Bank (SNIB) has committed £19.5m to the project, located near the Edinburgh Royal Infirmary, the city’s Bio Quarter and Little France. It will comprise 241 private rental homes and 129 “affordable” properties.
SNIB, which recently vowed to ramp up efforts to support new homebuilding as part of a revised investment strategy, said it had partnered with Hunter REIM and Ediston Real Estate on the development, with the site located on the former Edmonstone Estate.
The homes will be constructed using “advanced timber methods”, delivering high levels of energy efficiency and sustainability. Residents will also benefit from a new community heat network, providing low-carbon heating and hot water.
The site is said to be shovel-ready, with construction expected to commence by the end of this year and the first new homes scheduled for completion from early 2028.
Andy Mallin, investment director at the bank, said: “Quality rental homes are key to supporting workforce mobility, so this development - near Edinburgh’s Bio Quarter and major employers - is extremely well-placed.
“Scotland’s housing challenges require urgent and meaningful intervention. This investment is an important step in increasing the supply of high-quality, sustainable homes, supporting economic growth and building stronger communities for the future.
“This is the first joint venture formed by the bank. We are pleased to partner with Hunter REIM and Ediston, helping attract much-needed capital to Scotland,” he added.
Andrew Moffat, managing director at Hunter, said: “Little France is an important development for the city, providing a mix of private and affordable homes in a location close to the Bio Quarter, Edinburgh Royal Infirmary and other major employment centres.
“We are particularly pleased that the development combines high-quality design and sustainability with a long-term rental model, creating a new neighbourhood that will provide high-quality homes for residents for many years to come.”
Danny O’Neil, chief executive at Ediston, added: “Hunter and Ediston are working with the Scottish National Investment Bank and our other partners to deliver much-needed, high-quality rental housing in Edinburgh. The project is one of a number that our Living Platform will deliver and manage in Scotland and which has a pipeline of over 2,000 homes.”
Last month, the head of SNIB admitted the outlook was “challenging” after the bank’s annual losses spiralled to £138m.
SNIB was established in November 2020 to invest in companies and projects with potential to deliver both “financial returns and societal benefits”. It is wholly owned by Scottish government ministers, on behalf of Scottish taxpayers, but operates independently from government.
Last month, the bank’s latest annual report and accounts - covering the year to March 31 - revealed that bottom-line losses amounted to the sum, reflecting losses from the failure of three early investments and other write-downs.
The hefty deficit - which compared with a paper loss of £77m a year earlier - also reflected anticipated losses relating to the failure of two further portfolio companies whose administration processes had not completed by the end of March.
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