Global real estate powerhouse Hines has acquired Solasta Riverside, a 324-unit build-to-rent tower in Glasgow's city centre, signalling growing institutional appetite for Scotland's underserved rental market. The 20-storey scheme, purchased through Hines European Property Partners (HEPP) from Legal & General, sits at the heart of the €463m Clyde Place regeneration project.
The 2022-completed development spans 19,600m² of residential space alongside 353m² of ground-floor commercial units, featuring premium amenities including a gymnasium, co-working facilities, private roof terrace and games room. Located just five minutes from Glasgow Central railway station, the asset neighbours Barclays' new 46,450m² office development and sits opposite major occupiers including PwC, EY and HMRC across the River Clyde.
Despite being the UK's third-largest city with 35% of residents aged 25-44, Glasgow possesses the smallest funded BTR pipeline of any major regional UK city, creating a compelling supply-demand imbalance for investors. The city boasts the UK's highest graduate retention rate at 51%, yet suffers from an acute shortage of high-quality rental accommodation for young professionals, presenting significant rental yield opportunities that have been largely overlooked by institutional capital.
Jurriën de Koning, Managing Director at Hines, commented: "Glasgow presents a compelling proposition to graduates and young professionals, boasting a diverse and prestigious range of locally headquartered employers, a high-quality of life and thriving cultural ecosystem. These factors support robust demand for high-quality rental accommodation in the city centre."
The acquisition follows Hines' forward-funding of a 519-apartment Newcastle development, demonstrating the firm's conviction in UK regional living strategies. Notably, the Glasgow market's rental yields are expected to outperform London and Manchester due to lower acquisition costs and stronger demand fundamentals, with potential for significant rental growth as the city's financial services sector expands.
Mike Powell, Head of Residential Transactions at Legal & General, noted: "The sale of Solasta, Glasgow is another example of how we are delivering on our business plan of recycling capital to support the delivery of new homes and increasing much-needed housing supply across the UK." CBRE and Pinsent Masons advised Hines, while Knight Frank and Addleshaw Goddard represented the vendor.
People Mentioned:
- Jurriën de Koning, Managing Director, Hines
- Mike Powell, Head of Residential Transactions, Legal & General
Companies Mentioned:
- Hines - Global real estate investor, developer and manager (acquirer)
- Legal & General - Financial services company (vendor)
- Hines European Property Partners (HEPP) - Hines' open-ended core-plus European strategy
- Barclays - Banking and financial services company
- PwC - Professional services firm
- EY - Professional services firm
- HMRC - UK tax authority
- CBRE - Commercial real estate services (advisor to Hines)
- Pinsent Masons - Law firm (advisor to Hines)
- Knight Frank - Property consultancy (advisor to Legal & General)
- Addleshaw Goddard - Law firm (advisor to Legal & General)
Image Source: Hines
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