Financial service Legal & General has agreed to fund a major Birmingham build to rent (BTR) development site known as Newhall Square for £53m
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 located between 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 .”