Glasgow build to rent. Where has the money come from and where will the profits go?

Major UK, American and Middle East investment corporations are behind the big Build to Rent projects taking shape in Glasgow just now.

This week a Glasgow Times Spotlight series we look at the new model that is coming to the city.

Yesterday, we highlighted the main projects underway or planned in the city.

READ MORE: Spotlight: Glasgow's new Build to Rent flats, where and what are they

They are marketed under the names Moda, Get Living, Buchanan Wharf and Platform.

Apartments cost around £1500 a month for a one bed property, with on site amenities and broadband included.

Behind those names are international investment firms and property developers who have pumped hundreds of millions of pounds into the schemes looking to make big long term financial gains.

Today, we tell you where the cash to build them is coming from and where the profit from rents will go in investment returns.

The firms involved, some are privately owned by fantastically wealthy property investors, have tens of billions of US dollars in capital and property deals involving them are regularly done in sums totalling billions of dollars.

Many have been involved in investing in retirement villages in the US and the purpose build student developments, like those that have been built in the city centre and west end in Glasgow.

Now their attention has turned to Build to Rent, looking to cash in on their investment in Glasgow.

The biggest development is 750 flats, planned by Get Living, for the old goods yard behind High Street Station.

READ MORE: Thousands of new homes planned across Glasgow: Here's where.

Get Living is a partnership between Qatari Diar, which is wholly owned by the Qatar Investment Authority and property firm Delancey.

It has already built almost 1500 Build to Rent homes in the London 2012 Olympics Athletes’ Village.

Qatari Diar has projects underway in more than 20 countries around the world with capital worth around $8billion and an investment value of $35bn.

With around $300billion in assets the QIA has stakes in some of the world’s biggest brands including Volkswagen and Sainsbury’s and one of its subsidiaries owns Harrods. Qatari Diar also owns the Shard building in London.

At Central Quay, Platform is building 500 flats for rent. It is also building similar developments in Cardiff and Sheffield.

The firm behind it is Northwood, which is a privately owned European and US investment firm with around $9bn of assets around the world in hotels, residential and office developments

It was set up by John Z. Kukral, a former CEO of Blackstone Real Estate Advisors.

On its website Northwood boasts a total enterprise value of $17bn.

A spokesperson for Platform said: “Platform Glasgow is a joint venture between Northwood Investors and ourselves. Northwood Investors has a great understanding of the market from its experience of developing and operating multifamily assets at scale in the US.

“That experience is highly relevant to the UK build-to-rent market and complements our UK experience. There is a strong overall strategic alignment between the two businesses.

“We do not disclose the commercial terms of our schemes.

“As with any residential rental property investment, investors will receive the rental income from the apartments, and also benefit from any capital appreciation of the property over time.”

Moda is building 433 flats at the old Pitt Street Police HQ.

The investment is provided by Apache Capital and Harrison Street Investments as well as insurance and pension giant NFU Mutual. Apache Capital is an independent privately owned and controlled firm set up by John Dunkerley and Richard Jackson in 2008.

Harrison Street was set up by the family that owned mobile phone giant Motorola and bought out by investment firm Colliers in a half a billion-dollar deal.

Oscar Brooks Moda Living director said: “As a family company with a long-term view we co-invest in all of our projects because we believe in the product and the sector. Our Glasgow flagship, Moda, Holland Park, was funded by Harrison Street, Apache Capital and the National Farmers Union totalling city investment of over £130m. We are now bringing forward our second major project in the city at Lancefield Quay, though this is subject to planning consents.

“Our business model reflects Moda’s position as a long-term custodian of its neighbourhoods – we don’t build the homes to sell them off and move on to the next project. Regular rental income gives our investors a return on their investment over a number of years, secured by Moda’s best-in-class service driving resident retention. It’s the secure revenue stream that investors are seeking.”

The Build to Rent flats at Buchanan Wharf at the Barclays development in Tradeston led by Drum Property is backed by pension and insurance giant Legal & General.

Drum Property didn’t take up the offer to answer our questions.

Get Living said: “Unfortunately Get Living won’t be able to comment for this piece.”

Tomorrow: Is it good or bad for Glasgow?