PGIM Real Estate has struck a deal with Court Collaboration to finance the development of a 550-home build-to-rent scheme in Birmingham.
The funding for the redevelopment of the Brindley Drive car park comes through the PGIM Real Estate Capital VII, the seventh fund in the company’s high yield debt fund series, which closed at €1.82bn in 2021.
Alex Neale, managing director at Court Collaboration, said: “The site is in a prime location for BTR and our high-quality development will complement the neighbouring City Centre Gardens, Paradise re-development and Centenary Square.”
The announcement comes just days before the beginning of the Birmingham 2022 Commonwealth Games. Leader of Birmingham City Council, Ian Ward, said the city is beginning a “golden decade of opportunity for Birmingham”.
He added: “It’s a testament to our confidence and ambition as a city that a nearly $2tn fund has joined forces with one of our own home-grown SME developer companies.”
Andrew Macland, head of European debt for PGIM Real Estate, said: “This financing loan demonstrates our continued focus on ‘create core’ real estate assets in liquid markets such as the UK. This focus is driven by the structural trends we identify in residential, a sector seeing a strong generational shift in living needs, with rising demand for premium housing.”
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