PGIM Real Estate has entered into a funding partnership with Court Collaboration to support its acquisition and subsequent development of a build-to-rent scheme in Birmingham, on behalf of its closed PGIM Real Estate Capital VII (PRECap VII) fund.
Located in Birmingham city centre, the new development plans feature circa 550 apartments with a range of amenities, subject to planning consent.
The scheme, designed by CallisonRTKL, will see the Brindley Drive car park redeveloped, a location of strategic importance on the doorstep of many of the City’s public amenities, as well as the Paradise Redevelopment (a key urban mixed-use regeneration project in the heart of the city).
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. Having engaged with Court Collaboration for nearly two years, we are confident in their experience and network of strong local developers partnerships to be able to deliver this scheme and look forward to working together.”
The scheme will be delivered by specialist residential developer, Court Collaboration, which owns and manages over £1.5 billion of residential real estate developments across the West Midlands and throughout the UK.
According to Court Collaboration, over the last 12 months, UK rents have been increasing on average at 7.5%, with Birmingham up by 9.4%, higher than the UK average (excluding London).
Alex Neale, Managing Director at Court Collaboration, said: “Having now exchanged on this exciting scheme we look forward to bringing our plans forward for local engagement prior to submitting a planning application. 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. Watch this space for more in the coming weeks and months. As a business we are thrilled to start our JV with the second biggest real estate fund in the world, and just as the Commonwealth Games are set to begin in our beloved city. We hope this deal is the start of many.”