Planning consent is already in place and Springfield expects to begin construction this month and to complete handovers by the end of its 2021/22 financial year.
The West of Scotland Housing Association (WSHA) project is part of the Clyde Gateway regeneration programme and will be jointly funded by Glasgow City Council and private finance provided by WSHA lenders.
Springfield said that the agreement improves its revenue and profit visibility as well as supporting cashflow, with revenue based on monthly valuation over the period of delivery.
The 114 homes will comprising one- to five-bedroom social rented and mid-market rent homes. The plans also include two commercial units and provision of play areas. Solar photovoltaic panels will be installed on the roof of the buildings.
The 2.2-hectare development has planning consent for 237 homes, and Springfield is in negotiation for the provision of the second phase of 123 homes with another provider.
Innes Smith, CEO of Springfield Properties, said: “This is another great contract for Springfield that strengthens our revenue visibility over the next two years. We are also proud to be contributing to the Clyde Gateway regeneration, which is an important programme to stimulate growth in this area in the West of Scotland as well as provide much needed additional housing in Glasgow.
Andrew Kubski, West of Scotland Housing Association director of development and asset management, said: “West of Scotland Housing Association is excited to be working with Springfield Properties on our first joint Glasgow project. We have been supported both by our own funders and funding provided by Glasgow City Council that allows us to deliver these 114 homes that will form an integral part of WSHA’s development programme and growth strategy to create high-quality energy-efficient homes for our tenants and customers.’’
The brownfield site in the east end of Glasgow has been empty for approximately 60 years. The Clyde Gateway regeneration programme, which is a partnership between Glasgow City Council, South Lanarkshire Council and Scottish Enterprise, is backed by the Scottish Government and aims to achieve social, economic and physical change for communities over an area of 840 hectares. Over a 20-year period to 2028, the programme intends to deliver the construction of 10,000 new homes and creation of 21,000 jobs.