Developers Moda and Apache Capital Partners have signed a £215m deal to deliver 525 homes in Edinburgh for private rent.
The joint venture will oversee design, build and management of the new residential units on the Fountainbridge site after buying it from landowner Grosvenor.
The scheme will also include 25,000 sq ft of commercial space, alongside 15,000 sq ft of community facilities including a gym, communal lounges and roof terraces.
Moda is planning to begin work on site by the end of this year, with the project set to complete in 2022.
There are already 250 homes on the site, which include units for sale and affordable housing alongside PRS homes.
Apache Capital Partners managing director Richard Jackson said: “Located in the heart of Edinburgh within an established regeneration area, this site matches our previous acquisitions and is perfectly in line with our strategy of delivering best-in-class PRS developments in prime city centre locations around the UK.
“PRS [is] an attractive investment in times of economic or political uncertainty, with its ability to generate long term, stable and diversified income streams.”
The Fountainbridge scheme is Moda’s second major investment in Scotland, having purchased the former Strathclyde Police headquarters in Glasgow for a £105m privately rented redevelopment last year.
Moda and Apache Capital Partners have a £1.1bn portfolio of sites across city centres in the UK.
Other projects currently under way include Angel Gardens, a 34-storey, 466-apartment scheme worth £153m in Manchester city centre, which is being built by Carillion.