THE head of the Scottish property company behind a huge planned regeneration of Candleriggs Square in Glasgow, the site of the former Goldberg’s department store, has hailed the securing of funding for a 346-apartment development as a “significant step forward”.

Candleriggs Development 2, a joint venture between Scotland's Drum Property Group and Stamford Property Investments, announced yesterday it had agreed an £81.5 million deal with Legal & General to deliver the build-to-rent housing development on the site.

Drum managing director Graeme Bone hailed the L&G deal as “a much-needed catalyst, heralding an exciting future for the city centre as it starts to recover following months of lockdown”.

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He declared: “The L&G deal is testament to the unwavering commitment and confidence we have placed in both the Candleriggs Square site and Glasgow city centre during these most testing of times.”

Mr Bone added: “It represents a significant step forward in the long-awaited regeneration of one of Glasgow’s most prominent gap sites, driving forward the evolution of Candleriggs Square, which has quickly established itself as one of Scotland’s largest and most important commercial and residential development sites.

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“This will be a huge boost to the area and to local businesses, who are in desperate need of some good news right now. We can now look forward to a once-in-a-generation opportunity to transform a very special area which has always been at the centre of Glasgow’s commercial and social development.”

The property groups’ plans for the 3.6-acre site in Merchant City also include a 500-room hotel and leisure complex which will be owned and operated by the Student Hotel Group.

Approval was granted for a “planning application in principle’ for the entire site by Glasgow City Council in May 2020, the property groups noted, adding this included a detailed application for the first development phase taking in the hotel complex. They say this will be Scotland’s largest hotel.

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Construction of the hotel is due to begin early next year.

L&G will forward fund Candleriggs Development 2 to deliver the apartment complex.

The joint venture company has now submitted a detailed planning application to Glasgow City Council for the residential development.

As well as the 346 apartments, the proposed 17-storey, 325,000 sq ft building will include a range of retail and commercial units at ground-floor level.

An entrance lobby will open on to Trongate, while various roof terraces will provide views across the city.

The Drum and Stamford joint venture first launched its ambitious £300m plan to transform Candleriggs Square when the site was bought in March 2019.