LaSalle Investment Management has confirmed that it has acquired a long leasehold interest in Birmingham’s biggest build to rent scheme
The deal sees LaSalle acquiring 603 build to rent flats at Nikal’s Exchange Square, next to the proposed HS2 terminus in the city’s Eastside area.
The global investment manager paid more than £100m on behalf of a client, following the first phase of the development winning planning consent.
Nikal announced it had secured a funding deal at MIPIM in March, but did not disclose the buyer.
The development includes three buildings of mainly one- and two-bedroom apartments. A fourth building with be retained by Nikal for private sale, along with a retail element. Work is due to begin on site this summer, with completion between 2018 and 2019..
Richard Debney, regional director at LaSalle Investment Management, said: “Exchange Square will be the first build to rent scheme of its size in Birmingham, which has enjoyed a very strong residential lettings market of late with a shortage of high quality apartments.”
Andrew Stanford, UK residential fund manager at LaSalle, said: “We will continue to target opportunities of this type in cities, such as Birmingham, that our model indicates have strong demand fundamentals.”
Exchange Square is the second residential phase of Nikal’s £600m regeneration of Masshouse, which has delivered 354 apartments across two buildings to date.
Nikal has an existing outline consent for up to 1,000 residential units on the site, with a detailed planning application for a second phase of development, including additional residential buildings and a new public square, due to be determined by Birmingham City Council in May.
LaSalle was advised by CBRE; Savills has been appointed as property and lettings manager.
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