LaSalle Investment Management has struck a £100m funding deal with Manchester-based property company Nikal for its major PRS scheme Exchange Square, in Birmingham.
Nikal announced the £100m funding deal at last month’s MIPIM event, but at the time declined to name its funding partner.
The deal is believed to be subject to a reserved matters planning application for the scheme gaining consent next month.
Subject to consent, work is set to start on site this summer to build 603 new city centre flats in a trio of buildings, eight, 15 and 26 storeys high. Alongside the flats will be 27,500 sq ft of ground-floor shops, and 5,850 sq ft members’ club-style hub. Completion of the final block will be before the end of 2019.
An application for a second phase of development at Exchange Square, including an additional building – likely to be a 32-storey tower designed by Ian Simpson Architects – and a new public square, will follow shortly.
LIM is pushing forward with a major drive into the UK PRS market in London and the regional cities and aims to invest £500m in the sector by the end of this year. It is being advised by Savills.
Knight Frank and Savills are joint sales agents on Exchange Square.
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