Queens Cross will build 300 affordable homes for rent and a further 300 homes for sale on the derelict site just north of the city centre. There will also be new park and green space along with community and commercial developments.
The association is currently in discussion with a range of developers to progress the Hamiltonhill development. The scheme is on schedule to start on-site in the spring with initial ground and drainage works.
“This is just the latest piece of the jigsaw that will deliver a real transformational change to this part of the city,” said Queens Cross chief executive Shona Stephen. “Building a relationship with an asset management company for funding is a first for Queens Cross. This innovative approach to securing investment is a great demonstration of our commitment to explore all avenues to secure the funds we need to help improve the lives of our tenants, and to build Queens Cross as an area people can be proud to call home.”
M&G Investments head of social housing Mark Davie said: “Queens Cross Housing Association is already providing much needed housing across Glasgow, supporting the local community. This is our third deal with a housing association in Scotland where good quality affordable homes continue to be in short supply.
“This transaction will deliver sustainable long-term returns to our pension fund clients, secured against residential property. M&G has now invested over £6 billion in UK social housing and we are always looking for more opportunities to invest, to help address the shortage of affordable homes across the country.”
The money will also allow the association to restructure existing debt, freeing up more money to explore other development opportunities in the area.
Glasgow City Council will also be a key partner and funder delivering the project as part of the Glasgow Canal Regeneration Partnership area.
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