University College Birmingham is selling a consented city centre residential development in Birmingham’s Jewellery Quarter.
UCB has instructed Avison Young to sell the freehold for the 0.78-acre site on Legge Lane with consent for 100 flats and no guide price.
The scheme adjoins the unconsented Sytner Garage site, which is also being marketed with a potential for up to 350 flats across 2.6 acres. It is located within the largely residential former industrial Jewellery Quarter.
Local developer Blackswan Property previously secured consent for 99 flats in a four-storey scheme designed by D5 Architects in 2015. Development initially proposed part restoration and part demolition of the existing buildings. Work commenced on site but the building collapsed and was subsequently demolished, leaving the site vacant.
Last year, UCB lodged fresh plans for that part of the site, adding an additional building but still keeping the total homes at 100, with a plan to create a build-to-rent scheme as a long-term asset working with Blackswan Property.
The council’s assessment of the 2020 revised plans estimated a gross development value of £20m for the BTR asset with a 4.5% net initial yield, or a £22m for-sale development value.
Since then, Blackswan Property has shifted focus, following its acquisition by Hungarian-based developer Cordia, with plans for new acquisitions and achieving planning consent for residential and co-living sites. Last year it also exited the nearby Hockley Mills scheme, with Sir Robert McAlpine taking over to develop a £120m BTR scheme for L&G.
Demand for both BTR and for-sale remains strong in the Jewellery Quarter area, with other schemes from Henry Boot Developments, Galliard and, just outside the neighbourhood, Moda Living.
UCB is accepting bids until 26 March.
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