Shetland set for first mid-market rental properties following construction investment

Spades will soon be in the ground in Shetland as works starts on the construction of six new affordable homes – the island’s first mid-market rental (MMR) properties – following a £730,000 investment by the Scottish National Investment Bank.

The Bank has invested in Shetland-based DITT Construction to support the construction of six high-quality, one-bedroom homes in Lerwick.

Once complete, the homes will be purchased by Shetland Islands Council and made available for mid-market rent which is particularly suited to key workers and young professionals who often struggle to find suitable accommodation on the islands.

An integrated team from Harper Macleod comprising banking, corporate and construction experts, advised the Scottish National Investment Bank on the transaction. The banking team, led by Ricardo Matteo supported by Andrew Ronald, Kirsty Watson and Madi Robb, advised on the funding element of the transaction while a corporate team led by Paula Skinner supported by Craig McKerracher, Rachel Miele and Sophie Allan provided due diligence, with construction due diligence provided by Michael Conroy and Effie-Jean Mackenzie.

This is the first transaction for which Harper Macleod has provided legal advice to Scottish National Investment Bank. The project illustrates the bank’s commitment to transform communities and to help people thrive by allowing them to stay on the islands.

MMR properties have been identified by Shetland Islands Council as a key tenure of housing need.

Ricardo Matteo, a partner in Harper Macleod’s banking team, said:

“Combining our local and Shetland-based knowledge with the multi-disciplinary experience of advising on complex and high-profile transactions, means we were able to advise the bank to on this impactful investment. Shetland has a thriving and diverse economy but faces challenges to retain talent due to the shortage of quality and affordable accommodation for young people.”