NEW BUILD TO RENT DEVELOPMENT GAINS FUNDING
The Uk’s Legal & General has now agreed funding for its latest Build to Rent (BTR) property in Birmingham known as Newhall Square.
The forward funding deal has been agreed with residential developer Spitfire Bespoke Homes and will bring L&G’s total pipeline of build to rent units to over 1,700.
The development has planning permission for 220 residential units, 7,500 sq ft of ground-floor commercial space, a public square and 61 car parking spaces.
Newhall Square is ideally locatedbetween the central business district and the retail/leisure hub of the Jewellery Quarter.
Dan Batterton, BTR fund manager at LGIM Real Assets, said: “This development – in a highly sought-after area of Birmingham – links the industrial heritage of the Jewellery Quarter with the modern business district.
“The location is ideally suited to high-quality, affordable and professionally managed rental accommodation that can help to address the supply-demand imbalance in the city.
“Spitfire was the natural partner to deliver this project as they are known for their design-led approach and have a track record of delivering outstanding quality homes across the UK.
“Given the huge infrastructure investment in Birmingham, it has been a target location for us in building a high-quality and well-diversified portfolio of build to rent schemes.
“We expect to continue adding schemes and new locations over the coming months.”
L&G is currently investing some £1bn into the BTR sector and has raised pension fund capital for an open-ended build to rent fund as well as a £600m joint venture between Legal & General Capital and PGGM.
The company has existing sites in Leeds, Bristol, Bath and Walthamstow as well as a scheme in Salford, which has been home to residents since June.
L&G has a pipeline of over 70,000 new homes – across the spectrum – over the next five to ten years.
David Jervis, managing director of Spitfire Bespoke Homes, added: “As a specialist developer with a reputation for creating unique homes featuring great design and unrivalled attention to detail, we are excited to be working with L&G to bring our expertise and high standards to the BTR sector.
“Drawing strength from our parent company – IM Properties, a widely respected developer of commercial and industrial properties – this is a prime opportunity for Spitfire Bespoke Homes to make its mark on the BTR market and extend our offering to a section of the market which is befitting of our own approach to quality homes in great locations .”