Rockspring Property Investment Managers, on behalf of TransEuropean VI (TEP VI), has acquired a private rental sector development site on Pershore Street, in Birmingham city centre with its joint venture partner Atlas Residential (Atlas).
The total development cost is GBP50 million and the seller is Hallmark BY Development, a joint venture between Bouygues Development (which has subsequently been rebranded Linkcity) and Hallmark Investments, the current landowner. Linkcity will act as the developer and delivery partner through Thomas Vale Construction, a Bouygues subsidiary, of what will be Birmingham’s first purpose built PRS development.
Located on the former Leisure Box site, the new scheme, which is known as The Beacon, will be adjacent to Birmingham City Council’s major Smithfield regeneration project, a short walk from the Bullring shopping and leisure centre and a ten minute walk to both Birmingham New Street station and Grand Central. Already under construction and due for completion in early 2018, the building will total 174,000 sq ft over 11 floors, providing 334 modern apartments for rent. The development will offer five studios, 262 one-bedroom and 67 two bedroom apartments, as well as amenities catering for residents including underground car parking, a gym and landscaped gardens, to be built in accordance to the Lifetime Homes standards.
This is Rockspring’s second PRS investment following the acquisition of a 145,544 sq ft development in Southampton in August 2015, which is also being undertaken in conjunction with Atlas. As one of the largest private rented sector operators in the United States, Atlas brings significant experience of asset managing PRS schemes.
Paul Hampton, Rockspring Partner and Fund Director of TEP VI, says: “The acquisition and development of this PRS scheme is in line with TransEuropean’s strategy of participating in urban regeneration activity in certain key cities across both the UK and continental Europe. We are actively looking to replicate this sort of transaction, not just in the UK but elsewhere in Europe where we see evidence of similar themes and trends.”
Hugh Elrington, Rockspring Partner and Head of UK Transactions, adds: “This is an exciting time for Birmingham where we see a lot of potential emanating from socio- economic trends in the UK, with a number of high profile companies across a range of sectors, including the professional and financial services sectors, moving significant parts of their operations there. Through this acquisition we are responding to, and indeed anticipating, this significant future growth trend.”