City Developments has bought a 49-storey build-to-rent development at Birmingham’s Paradise Circus.
The scheme, from Argent and Federated Hermes, will deliver 370 flats in a 155m octagonal tower. Argent secured planning consent earlier this year, as the first residential development on the 17-acre city centre site.
The tower will be the world’s tallest octagonal building and will be taller than Birmingham’s BT Tower.
CDL has purchased the 250-year leasehold site from the joint venture for £6.5m, equating to £18 per sq ft on a gross area of 359,329 sq ft. CDL expects to pay £110m to build the scheme and anticipates completion in 2025.
The scheme will be the third PRS project in the UK since 2019 and its second purchase this year.
In August, subsidiary CDL Hospitality Trusts agreed a £73.3m deal for Fiera Real Estate and Packaged Living’s Castings in Manchester. The deal for the 352-flat scheme was CDLHT’s first foray into BTR, as part of a revised strategy to broaden geographies and sectors, seeking stable asset classes beyond hospitality.
Sherman Kwek, CDL group chief executive, said, “The private rented sector continues to display resilience and strong growth potential, outperforming many other asset classes amidst the market volatility.
“We anticipate keen interest in the majestic octagonal high-rise residential building, which will augment the quality of CDL’s PRS portfolio and enhance our recurring income segment.”
Knight Frank advised Paradise Circus Partnership.
Jonny Stevenson, head of BTR at Knight Frank, said: “Octagon is the tallest and most iconic BTR development Birmingham has ever seen. It reaffirms the city’s status as a best-in-class location for investment and shows the depth of capital looking for opportunities outside of London.”
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