BlackRock and Outpost Management have acquired 628-home Lower Essex Square in Birmingham, in a forward funding deal from Lower Essex – a subsidiary of Apsley House Capital and Galliard Homes.
The scheme is the second asset to be acquired by Outpost Management’s joint venture with BlackRock Alternatives, through its real estate business, which is investing £500m in UK residential assets.
The 557,000 sq ft residential-led, mixed-use scheme, designed by Claridge Architects, will include 306 one-bedroom, 295 two-bedroom and 27 three-bedroom apartments for rent, with 20,000 sq ft of ground floor commercial and amenity space, across three separate buildings of 27, 12 and eight storeys respectively.
Construction work is due to start imminently, with phased completion expected from summer 2025 to summer 2026.
The scheme will be run by Outpost Management under its Enclave brand.
Outpost Management founder and chief executive Troy Tomasik said: “The city’s undersupply of housing, projected population and employment growth, proximity to London and increasing retention of higher education graduates all contribute to making it an ideal location to invest.”
BlackRock European Real Estate director James Halstead said: “As this acquisition demonstrates, we continue to see attractive opportunities in the UK residential market, particularly in high-growth areas such as Birmingham.
“More broadly, it aligns with our wider investment strategy of investing in sectors experiencing strong structural tailwinds.”
Located a short walk from Birmingham’s city centre and New Street Station, the site is immediately adjacent to the 40+ acre Smithfield regeneration area which aims to deliver significant public realm and amenity improvements.
Savills, Howard Kennedy and Gowling WLG advised Apsley House Capital and Galliard Homes. BlackRock Alternatives was advised by Simmons & Simmons, CBRE and Cast Consultancy.
Polly Simpson, head of multifamily development at Savills, said: “This transaction, negotiated through turbulent political and economic times, is testament to the robust investment credentials of UK build-to-rent.
“Helping to bring together this partnership has been a great privilege and I am thrilled we could support the jv through another forward funding transaction.”
Councillor Ian Ward, leader of Birmingham City Council said: “Birmingham’s status as a top destination for foreign investment has only been further cemented by this bold move, and it’s clear that BlackRock’s confidence in this city’s potential for growth is unwavering.”
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