March 02 2021

PfP Capital completes first two development sites delivering 109 new homes for Affordable Rent in Scotland



The impact-focused, Mid-Market Rent Fund has also raised an additional £40 million from the Scottish National Investment Bank


2 March 2021 – PfP Capital, the fund management business established by Places for People, today announces that it has completed the construction of the first two development sites and acquired a further site in January. The completed sites deliver 109 new homes for affordable rent with the additional site at Newhall Street in Glasgow delivering 151 apartments.


In addition, the Mid-Market Rent Fund has raised an additional £40 million from the Scottish National Investment Bank, taking the fund’s total commitments to over £180 million. This exceeds its initial target of £160 million and follows the investment from Strathclyde Pension Fund and Nationwide Pension Fund. As a result, PfP Capital is raising the initial target size of the fund to £240 million.


The fund is now developing seven sites, with a further 897 affordable homes under construction.  Acquisition of the Newhall Street site secures delivery of its target of over 1,000 homes for affordable mid-market rental. This will see more than £159m committed so far to delivering additional affordable homes. PfP Capital will continue to look for further development opportunities across Scotland.


The fund has worked closely with two developers to deliver these projects. MacTaggart & Mickel, a family-owned home builder, delivered 43 new homes at Millerhill, Midlothian providing a range of apartments and family homes as part of their Shawfair development which will also include new schools and community facilities. Keepmoat Homes, a national housing developer, has completed 66 new apartments as part of their Abbotsway development, which provides easy access to the centre of Paisley.


Both developments have proved attractive to those seeking high-quality, affordable homes near major city centres. The remaining seven sites are in Edinburgh and Glasgow and involve the redevelopment of a range of brownfield sites all of which are well located and will provide significant regeneration benefits to the surrounding areas.


The Fund was established to deliver mid-market rental homes including a mix of apartments and family houses within commuting distance of Scotland’s main cities.


The Fund will provide a range of accommodation options to those for whom the traditional private rental sector remains out of reach and who are not able to access social housing. The shortage of affordable, high-quality homes available was identified as the main driver for both the establishment of the Mid-Market Rent Fund and the Scottish National Investment Bank’s decision to invest.


The recently formed institution, backed by £2 billion of Scottish Government funding over ten years, has invested with PfP Capital as part of its mission “to invest in places and regeneration to improve opportunities and outcomes for people and communities”.


The fund has a unique proposition for investors as demand for affordable housing grows. It has social impact at its core, supporting the delivery of these much-needed additional affordable homes in Scotland. The Fund will also deliver consistent, Consumer Price Index-linked, returns to investors. PfP Capital has now  raised its target fund size to £240m, in line with its short-term pipeline of development opportunities, and with an eye on further growth in the future.


William Kyle, Fund Director, PfP Capital, said: “The capital provided by the Scottish National Investment Bank allows us to both exceed our initial target of 1,000 affordable homes and to accelerate beyond this as we attract additional funds. We have already made great progress in achieving that first target, completing construction on our first two developments comprising 109 homes. We would like to thank the housebuilders and the property managers, Touchstone, for delivering these homes under such challenging conditions as a result of COVID-19 and supporting people safely moving into their new homes, in line with the guidelines. We look forward to building on this success with the six other sites which are now underway.”


PfP Capital is being advised by Noble & Co.


The above is intended as a mere statement, it does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for securities nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This statement does not constitute either advice or a recommendation regarding any product.



For more information, please contact:

PfP Capital

Rob Yates, Edelman Smithfield: +44 (0) 20 3047 2546

Scottish National Investment Bank

Notes to editors:

About PfP Capital

PfP Capital is a fund management business established by Places for People Group Limited. Its objective is to create a suite of residential funds, raising equity and investing in regeneration and rental property across all tenures including established PRS, Build to Rent and affordable homes. Leveraging Places for People Group’s expertise in placemaking, property management and measurable social value PfP Capital adds its own FCA-regulated fund management expertise to offer investors stable returns and ongoing value growth.

About Places for People

Places for People is a leading placemaker in the UK. It believes that places work when they work for everyone, and these places are designed for the long term, with sustainable value at their core. Delivering social impact by taking a commercial approach is what makes Places for People different.


The Group’s award-winning, placemaking, property investment, development and management companies are active throughout the UK and collectively have the capability and expertise to create and manage entire places, considering all the things a place needs to become a sustainable community.

Places for People owns or manages more than 197,000 homes, provides services to over 500,000 people, operates over 120 leisure facilities, has assets of £4.5bn, and will be delivering 25,000 new homes in the coming years.

Scottish National Investment Bank

The Scottish National Investment Bank has been formally established as a public limited company. The Bank has been created to provide mission-led investment offering patient capital to build a stronger, fairer, more sustainable Scotland. The Bank was launched by Scotland’s First Minister on November 23rd 2020.

The Bank’s missions focus on addressing key challenges and creating inclusive, long-term economic growth. The missions are:

  • Supporting Scotland’s transition to net zero by 2045
  • Building communities and promoting equality by 2040
  • Harnessing innovation to allow our people to flourish by 2040

The Chair of the Bank’s Board is Willie Watt, its Chief Executive Eilidh Mactaggart was appointed in April 2020 and its non-executive directors are: Tracey Ashworth-Davies, Carolyn Jameson, Peter Knott, Jason McGibbon, Nicholas Moon, Candida Morley, Dr Jacqueline Redmond and Sir Jonathan Taylor.

The Bank previously announced an investment of £12.5m in M Squared, a Glasgow-based laser and quantum computing business.


The information on this website is directed at persons in the United Kingdom (“UK”) and not otherwise. The availability of any funds mentioned on this website in any jurisdiction other than the UK is subject to local restrictions. Except as specifically set out below the funds mentioned on this website have not been registered or approved for distribution under the laws of any jurisdiction other than the UK.

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