The Scottish National Investment Bank has committed a further £20m to the Mid-Market Rent strategy managed by Thriving Investments, the social value and ESG-focused real estate fund manager. The Bank’s follow-on investment will support the development of up to 100 new homes and takes its total investment in the Fund to £60m. 

New Avenue Living, which has a mandate to build 1,500 high-quality, energy efficient homes within close proximity to major Scottish city centres, has to date delivered 649 homes, with another 422 currently in development. The homes are rented out at reduced rates on the open market, helping to deliver the much-needed supply of affordable homes.  

William Kyle, Fund Director for Thriving Investments, said: “The role of private capital in meeting the shortfall of housing in the UK has never been more critical, and we recognise our responsibility as stewards of that capital to showcase the pace and scale that can be achieved with the right platform. The Scottish National Investment Bank’s continued support is a strong endorsement of our differentiated structure and approach, reflecting the unique combination of social value and competitive and stable long term, day-one returns that the Fund offers, as well as the resilience of the asset class against what has been one of the most volatile macroeconomic backdrops of recent memory.

“We continue to work with our development partners to ensure the suitability of our end product against a constantly evolving consumer and regulatory backdrop. Environmental standards are a key priority, in particular energy efficiency and sustainable heating sources, which has seen us exploring sites with access to district heat.” 

Launched in 2018, the strategy is underpinned by a low-interest loan from the Scottish Government and has acquired nine sites across Edinburgh, Leith, Glasgow, Paisley, and Midlothian to date.