Financiers behind plans to build 400 sustainable new homes at a former Diageo distillery in Glasgow have signed a joint venture partnership to deliver on the project.

PfP Capital - the fund management arm of social enterprise Places for People - and social impact investor Housing Growth Partnership have announced an agreement to deliver "residential-led" urban communities across an initial 10 UK cities within the next three to five years. The joint venture is targeting construction of 1,200 "highly sustainable" homes worth in the region of £390 million.

The first of these projects is underway at the site of the former Diageo distillery in Dundashill, where an initial 78 townhouses worth £25m are under construction. This is the first phase in what is expected to be the development of 400 new homes argeted for completion by March 2025.

This and joint venture projects across other UK sites will be under the stewardship of development manager igloo Regeneration, which was acquired by PfP Capital in January of this year for an undisclosed sum.

READ MORE: New home designs for former Diageo distillery site revealed

The Glasgow development will be a mix of two, three, and four-bedroom homes for sale, with 80 per cent of the low-energy properties targeting an EPC A rating. Features will include photovoltaic roof panels, air source heat pumps, EV-enabled parking and a cycle path link to Glasgow city centre.

John Tatham, finance director at PfP Capital, said the partnership will accelerate development at a time when the pace of new home delivery is rapidly declining.

“Through bringing together a highly established equity investor, fund manager and award-winning developer, and leveraging long-established local authority relationships, the JV will deliver tangible social value alongside competitive and stable long term investment returns from day one,” Mr Tatham said.

Rachel Miller, investment director at Housing Growth Partnership, added: “In PfP Capital and igloo, we have a partner that shares both our social impact and sustainability values, and our desire to accelerate the much-needed delivery of quality homes across the UK.

"The JV reflects [our] ambition to support the UK’s diverse housing need through strategic partnerships with experienced developers and will see significant capital deployed into the transformation of urban brownfield sites in regional cities.”