The Social Hub has released details of its latest development project, taking on a longstanding unused site in the Scottish city of Edinburgh.
A project that could amount to around GBP200 million in total investment, it will redevelop the former Fountain Brewery site in Fountainbridge, which has stood unused in the city for approximately 20 years. As is typical with Social Hub sites, it will combine a mix of uses around accommodation and community uses. The company’s ideas fit within a larger masterplan for the local area, developed by the city council and aimed at reviving this part of Edinburgh with new canal-side public spaces, and blocks of affordable housing.
A Blend of Accommodation Offerings
The Social Hub’s scheme will include around 580 rooms of hospitality accommodation, being a mix of student flats, hotel rooms, and extended stay studios and apartments – all market segments where the city is reckoned to currently have a shortfall of provision. Co-working space for up to 300, along with other spaces for flexible rental will been included, plus a restaurant, rooftop bar, cafe, clubhouse, gym and a theatre are all in the plans being detailed.
The Social Hub has already consulted widely with the local community and stakeholders, to help them understand the positive impact the project is expected to deliver. Those interested in the concept only need to visit The Social Hub in nearby Glasgow, to see the concept in action.
Currently, The Social Hub operates 21 sites across major European destinations. Its pipeline projects aside from Edinburgh are in Turin, Italy and in Portugal with Lisbon Carcavelos. Always large scale developments, these can take some years to finesse through planning stages, before construction can start. In Turin, a target opening date of 2035 is in prospect for the urban campus that will transform a former industrial complex in the former Ponte Mosca area.
The Social Hub is growing with the support of shareholders APG and GIC, who have provided investment for the group’s major developments in European cities. More recently, the group has sold a majority stake in its Social Hub Berlin, to a pair of seasoned hotel accommodation investors.
New Investment Partners Come Forward
Rockfield and Ardian have a joint venture fund to invest in purpose built student accommodation across Europe. Their latest move was to acquire a major holding in the Berlin site, reckoned by local experts to represent an investment of around EUR100 million.
The Social Hub will continue to operate the site, with a long term management agreement in place. The deal will enable The Social Hub to reduce debt, and gives the business fresh funds with which to further invest in new projects such as Edinburgh, as well as a planned refresh of the Berlin development. Looking ahead, The Social Hub will be keen to find more projects where it can expand on an asset light basis, with others taking on development and investment.
