Burness Paull advises Dandara on PRS deal
Burness Paull has acted for developer client Dandara in a major deal with La Salle Investment Management, for the development of a 292 unit private rented sector (PRS) scheme in Aberdeen.
The development is first of that scale in Scotland, and paves the way for a number of similar deals in the increasingly important PRS sector.
The Forbes Place development is a mix of apartments and townhouses at the Stoneywood estate in Aberdeen, and is aimed at the medium-term occupancy rental market.
Gavin Wyley, managing director of Dandara in Aberdeen, said: “Forbes Place was designed specifically for the PRS and we are pleased to secure this deal with LaSalle as it makes its first move into this sector on behalf of a large pension fund client who was looking for an opportunity to purchase a purpose-built-and-maintained development in a major business location.”
Richard Rennie, partner at Burness Paull said: “We were delighted to support Dandara on this high value and ground breaking deal.
“A development of this size, designed specifically for the PRS sector, is solid evidence of the increasing appetite of institutional investors for purpose built rental developments in major business locations.
“It remains to be seen what the general body of institutional investors determine to be the minimum viable size for such schemes and at what level the institutional appetite for this market will be satisfied.
“However, it seems clear that investment in PRS schemes will have an important role to play in setting the standard for housing stock in the private rented sector - perhaps pushing up quality and consistency overall.”