Swedish residential investor Heimstaden Bostad has agreed a £160m forward funding deal for Galliard Homes and Apsley House Capital’s Soho Wharf in Birmingham.
EG first reported that Galliard and Apsley were seeking a BTR exit for the scheme in August last year.
The 752 homes were originally planned as 100% for sale. But, in a challenging market, the joint venture ditched the strategy in favour of rental, after also exploring other options, including cutting up the site and selling parcels to housebuilders.
Soho Wharf comprises 650 flats across six residential buildings of up to 14 storeys and 102 two and three-bedroom townhouses, designed by Claridge Architects. The joint venture secured the site in 2017 and achieved planning consent at the start of 2020.
The transaction is the first investment into UK real estate from Heimstaden Bostad. The company is the largest real estate business in the Nordics and has more than 114,000 homes under management, valued at £15bn.
Søren Vendelbo Jacobsen, co-chief investment officer at Heimstaden Bostad, said: “An entry into the British market is in line with our strategy to expand into strong and attractive European markets. By providing high-quality yet affordable homes in an up-and-coming area, we are well-positioned to capitalise on the growing rental market in Birmingham and the UK.”
The investment follows other moves from Sweden, as investors in more advanced markets expand to UK BTR. Last year, private equity firm EQT Real Estate also agreed a debut deal, teaming up with Sigma Capital to build a £1bn BTR portfolio of low-rise flats and housing in outer London.
That commitment saw a string of deals, in a record year for the market with £4.7bn invested into UK BTR in the 12 months to the end of March, funding 16,229 homes, according to Radius data.
Savills advised Galliard Homes and Apsley House Capital.
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