Cording Real Estate Group’s UK private rented sector (PRS) investment fund is funding an apartments project in Leicester.
The manager said its Cording UK Residential Investment Fund has agreed to forward fund the development of up to 160 apartments by Aimrok Development on the site of Wellington House.
Financial details were undisclosed.
Cording said planning consent has already been obtained for the conversion of Wellington House, a 52,673sqft building that was built in the 1970s.
The latest deal is the fund’s fifth investment. Last month, the fund agreed to forward fund a build-to-rent development by High Street Residential on part of the site of the former Kent Street Baths in the centre of Birmingham for £49.7m (€58.8m).
Charlie Miller, director of residential acquisitions at Cording, said: “Cording’s proprietary research forecasts a sustainable high demand for affordable, professionally-managed accommodation in Leicester.
“Wellington House will provide low rise, Greenwich Village-style living that will appeal to tenants who want to live in the centre of Leicester.”
The Cording UK Residential Investment Fund was launched in August 2018 with equity commitments of more than £100m from German institutional investors.
Cording is in the process of raising an additional £150m of equity commitments from continental European institutional investors.
Using leverage, the fund will have £400m to create a diversified portfolio of PRS assets.